BoJ official warns against early hikes
Bank of Japan board member Toichiro Asada warned in a November 12 speech in Nagasaki that premature interest-rate increases could weaken economic growth and underlying inflation.
He said consumption lacked momentum and recent price increases were not necessarily driven by demand. The central bank had kept its policy rate unchanged in October.
His remarks highlighted divisions within the BOJ over the timing of further tightening. With the bank's estimated neutral interest-rate range at 1.1%–2.5%, policymakers may need to assess more carefully how additional rate increases could affect economic activity.
Comments