The Bank of Japan’s most dovish board member warned against hurrying to raise the benchmark interest rate as authorities will need to closely monitor the impact of U.S. tariffs on economic activity.
"Given the extremely high uncertainties in play, my view is that it is appropriate for the bank to conduct monetary policy deliberately to reflect the actual state of economic recovery,” Toyoaki Nakamura, the board member, said in a speech Friday in Fukuoka Prefecture.
In the last scheduled speech before his five-year term ends next month, Nakamura stuck with his cautious stance after consistently voting against rate hikes undertaken by Gov. Kazuo Ueda starting in March last year. His remarks counter a recent revival of market speculation over the chances of the BOJ raising borrowing costs this year. Some market participants renewed those bets after a trade deal between U.S. and China eased tensions in global financial markets.
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