Japan not conducive for further rate hikes – PM

Japan’s Prime Minister Shigeru Ishiba, after meeting with Bank of Japan (BOJ) Governor Kazuo Ueda, stated on Wednesday that the country is not now favorable to additional interest rate increases.

Ishiba emphasised that he does not see the need for additional rate increases, marking a departure from his previous hawkish stance. This statement represents Ishiba’s strongest stance yet against further rate hikes.

Ishiba, the newly appointed prime minister, has been viewed by markets as supporting the BOJ’s policy normalisation. In August, he told Reuters that a gradual increase in ultra-low rates would improve Japan’s profitability.

Japan’s newly-appointed economy minister, Ryosei Akazawa, expressed hope that the BOJ would be cautious about raising rates. Akazawa emphasised Japan’s priority of overcoming deflation.

Following a meeting with Ishiba, BOJ Governor Ueda assured the premier that any decision on raising interest rates would be approached with caution.

Attribution: Reuters

Subediting: M. S. Salama