BOJ’s Ueda Would Need to Hike Rates If He Used Taylor Rule Again
- BOJ chief said rule swayed his vote against rate hike in 2000
- Economists say central bank policy not as simple as one rule
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Bank of Japan Governor Kazuo Ueda would likely scrap the world’s last negative policy rate sooner rather than later if he applies the same rule he cited to vote against a rate hike over two decades ago.
Ueda, then a BOJ board member, referred to the Taylor Rule in explaining why he couldn’t support the end of the central bank’s zero interest rate in August 2000. His decision to dissent won plaudits after the fact when the bank was forced to return to zero just six months after the board voted to hike.