Bank of Japan board member Junko Nakagawa reaffirmed the bank’s standing commitment to continue lifting its benchmark interest rate if conditions allow while also citing uncertainties related to trade, in a nuanced speech that avoided stoking market expectations for another hike.
If the outlook for the economy and inflation is realized, "the bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation,” she said Thursday in a speech to local business leaders in Yamaguchi Prefecture.
By rehashing the BOJ’s standing policy stance, Nakagawa signaled her intention to avoid fueling market speculation for a hike ahead of the board’s next meeting, which concludes on Sept. 19. Her remarks indicate there’s at most a low chance of a move coming at that meeting as of now.
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