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BOJ Policymaker Calls June Rate Hike Too Early

BOJ Policymaker Calls June Rate Hike Too Early

   Sapporo, June 6 (Jiji Press)--Bank of Japan policymaker Toyoaki Nakamura said Thursday that it would be too early for the BOJ to decide on an interest rate hike at its next policy-setting meeting on June 13-14.
   At a press conference in the northern Japan city of Sapporo, Nakamura pointed out that the deflationary mindset that has persisted in the Japanese economy for three decades cannot be eradicated by only some two years of wage hikes.
   He indicated the possibility that a BOJ rate hike could lead to a slump in consumption. He also noted that it is appropriate for the central bank to take time to reduce its purchases of Japanese government bonds while monitoring the progress of an economic recovery.
   Meanwhile, Nakamura said that the yen's one-sided depreciation is unfavorable for the Japanese economy, but added that it cannot be addressed by monetary policy alone, given the adverse effects of monetary easing.

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AFP-JIJI PRESS NEWS JOURNAL


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