At a speech in Nagasaki, BOJ Policy Board member Asada Toichiro (浅田統一郎) noted the need to pay attention to the risk that rate hikes could weaken the economy and push down the underlying rate of inflation, and urged close attention to the pace of future rate hikes.
BOJ Policy Board member Asada Toichiro (浅田統一郎) gave a speech in Nagasaki, suggesting that rate hikes could cause the economy to weaken. He also referred to the risk of a decline in the underlying rate of inflation and expressed the view that a cautious response would be required while assessing economic trends.
Regarding future rate hikes, he said, “The pace requires close attention,” emphasizing a cautious stance on the conduct of monetary policy. His remarks addressed both price trends and the outlook for growth.
There was also discussion of the BOJ's past interest-rate movements. At the September Monetary Policy Meeting, a decision was made to raise the policy rate from around 1.0% to 1.25%, while rates were left unchanged at the October meeting. Asada Toichiro (浅田統一郎) reportedly opposed the rate hike at the September meeting.
The remarks could refocus market attention regarding future policy on the pace and timing of rate hikes. Attention will remain focused on official statements and developments in the minutes of future meetings.