BOJ Signals Possible Rate Hike Next Month as Inflation Risks Rise
The Bank of Japan signaled a possible benchmark rate hike next month after a summary of views from last month’s board meeting showed policymakers increasingly focused on upside inflation risks stemming from the conflict in the Middle East. Several members said the BOJ should raise rates soon unless there are evident signs of an economic slowdown, and one said a hike from the next meeting onward was quite possible even if the Middle East outlook remains unclear.
The summary also showed a more hawkish view among some members, with one saying the policy rate remains some distance from neutral and should keep rising at intervals of a few months, while another said the BOJ should accelerate rate hikes without hesitation if upside price risks increase. Still, the discussion was not one-sided: one member warned that a rate hike aimed at containing inflation would be highly likely to hurt economic developments, while another argued for a wait-and-see approach because the impact of the Middle East situation is difficult to foresee.
From the sources (8 posts)
@firstsquawkBOJ APRIL MEETING SUMMARY: ONE MEMBER SAID BOJ MAY NEED TO ADDRESS RISK OF PRICES DEVIATING UPWARD; ANOTHER SAID GIVEN SIGNIFICANTLY LOW REAL INTEREST RATES, APPROPRIATE FOR BOJ TO CONTINUE RAISING POLICY RATE
@firstsquawkBOJ SUMMARY: ONE MEMBER SAID RATE HIKE PRIORITIZING INFLATION CONTAINMENT HIGHLY LIKELY TO HAVE ADVERSE EFFECTS ON ECONOMIC DEVELOPMENTS; ANOTHER SAID MIDDLE EAST SITUATION IMPACT DIFFICULT TO FORESEE, REQUIRING WAIT-AND-SEE APPROACH
@firstsquawkBOJ SUMMARY: ONE MEMBER SAID NO NEED FOR HASTY ACTION BUT BOJ SHOULD RAISE RATES SOON BARRING EVIDENT SIGNS OF ECONOMIC SLOWDOWN; ANOTHER SAID QUITE POSSIBLE BOJ WILL HIKE RATES FROM NEXT MEETING ONWARD EVEN IF MIDDLE EAST OUTLOOK REMAINS U
@firstsquawkBOJ SUMMARY: ONE MEMBER SAID BOJ MUST PREVENT RISK OF INFLATION SIGNIFICANTLY DEVIATING UPWARD FROM MATERIALIZING; ANOTHER SAID JAPAN'S REAL POLICY RATE IS BY FAR THE LOWEST GLOBALLY & BOJ MUST CONTINUE ADJUSTING NEGATIVE REAL INTEREST RATE
@firstsquawkBOJ SUMMARY: ONE MEMBER SAID IF UPSIDE PRICE RISKS INCREASE, BOJ MUST ACCELERATE RATE HIKES WITHOUT HESITATION; ANOTHER SAID POLICY RATE STILL SOME DISTANCE FROM NEUTRAL, BOJ MUST CONTINUE RAISING RATES AT INTERVALS OF A FEW MONTHS
@firstsquawkBOJ SUMMARY: ONE MEMBER SAID DESPITE MIDDLE EAST UNCERTAINTY, ALL SCENARIOS POINT TO FURTHER UPSIDE PRICE RISKS; ANOTHER SAID PROLONGED MIDDLE EAST TENSIONS WOULD NECESSITATE RAISING POLICY RATE TO NEUTRAL AT AN EARLIER TIMING
@firstsquawkBOJ SUMMARY: ONE MEMBER SAID SUPPLY-SIDE CONSTRAINTS IF MATERIALIZED WILL EXERT EXTREMELY STRONG UPWARD PRESSURE ON PRICES; CABINET OFFICE REP SAID EXPECTS BOJ TO CLOSELY COOPERATE WITH GOVERNMENT PER JOINT STATEMENT IN CONDUCTING MONETARY
@businessThe Bank of Japan signaled the possibility of a hike to its benchmark rate next month with a summary of views from last month’s board meeting that conveyed concerns over upside inflation risks stemming from the conflict in the Middle East h