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Panel urges BOJ to take cautious approach to rate hikes

The Japan Times·Erica Yokoyama·21 days ago
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Kazuo Ueda, governor of the Bank of Japan, speaks during a news conference at the central bank's headquarters in Tokyo on April 28. | BLOOMBERG A key panel advising the government urged the Bank of Japan to consider risks of worsening corporate funding conditions when formulating monetary policy, in a sign that Gov. Kazuo Ueda may face pushback if he seeks to raise the benchmark rate next month. "We expect the BOJ to implement appropriate monetary policy while taking into account funding conditions in financial markets and monitoring price developments,” private sector members of the government’s economic and fiscal policy council said in materials submitted at Monday’s meeting. The panel also urged the central bank to remain mindful that shortages of goods and rising prices could increase corporate funding needs, according to the Cabinet Office. In a time of both misinformation and too much information, quality journalism is more crucial than ever. By subscribing, you can help us get the story right.…

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