BOJ to consider ‘pros and cons’ of rate increase
Bank of Japan Governor Kazuo Ueda said the central bank will consider the “pros and cons” of raising interest rates at its next policy meeting, giving the strongest signal yet on whether a rate hike is possible later this month.
He said that as uncertainties regarding the US economy and President Donald Trump’s tariff policies decrease, the possibility of meeting the BOJ’s economic and price forecasts increases.
Ueda told business leaders in Nagoya on Monday that labor shortages are becoming more severe, corporate profits remain generally high and Japan’s corporate lobby is calling for robust wage increases to be anchored.
“The BOJ is at the stage where it needs to examine whether firms’ active wage-setting behavior will continue,” he said.
Ueda said that the BOJ actively collects information on wage increases through surveys conducted in companies through headquarters and branches.
“We will examine and discuss market movements as well as economic and price developments at home and abroad… and consider the pros and cons of raising interest rates,” he said.
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