BoJ's Executive Director Nakamura says the BoJ will continue to raise interest rates while keeping a close eye on how the Middle East conflict affects the economy and underlying inflation, according to Reuters
Says:
- If our economic and price projections were to materialise, would likely continue to raise interest rates.
- Upward pressure from higher fuel costs on underlying inflation might be bigger than in the past as companies are becoming more eager to push up prices and wages.
Context
The BoJ's Executive Director Nakamura indicates a sustained path for interest rate hikes, contingent on economic conditions and inflation pressures fueled by the Middle East conflict. This stance suggests that the BoJ is alert to external shocks affecting costs, likely signaling a hawkish tilt that could support the JPY and impact fixed-income markets.
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