BOJ's Asada Urges Caution on Rate Hikes as Price Gains Lack Demand Support
Updated
Updated · Bloomberg · Nov 12
BOJ's Asada Urges Caution on Rate Hikes as Price Gains Lack Demand Support
3 articles · Updated · Bloomberg · Nov 12
Summary
Toichiro Asada said the Bank of Japan should move carefully on any further interest-rate increases, warning that higher borrowing costs could hurt the economy and weaken the price trend.
In a speech in Nagasaki on Thursday, the BOJ board member said recent price rises have not necessarily been driven by demand, undercutting the case for a faster tightening pace.
Asada's remarks mark a dovish note from within the BOJ, suggesting policymakers remain alert to the risk that rate hikes could choke off still-fragile inflation momentum.