BOJ’s Koeda warns against excessive hesitation in raising interest rates
Updated
Summary
Bank of Japan board member Junko Koeda cautioned against excessive hesitation in raising interest rates, reinforcing expectations of continued monetary tightening in the coming months after the central bank’s accelerated pace of normalization.
Why it matters
Japan’s 10-year government bond yield rose to around 2.95% on Friday, recovering some ground after declining in the previous session.
Governor Kazuo Ueda said policymakers would continue to monitor bond yields closely and reiterated that long-term interest rates should be determined by market forces. The BOJ is continuing to move away from its previous yield curve control framework.
What remains uncertain
Earlier reports suggested the BOJ was reluctant to deliver a rare back-to-back rate hike this month, while a potential increase in December remained under consideration.