Ishiba’s Surprise Warning to BOJ Casts Doubt on Hike in 2024
- Half of economists had expected a rate increase in December
- Key ministers meet with Ueda in an attempt to show unity
Shigeru Ishiba
Photographer: Yuichi Yamazaki/AFP/Bloomberg
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New Japanese Prime Minister Shigeru Ishiba’s unexpected warning against raising interest rates is pushing back expectations of another central bank move this year and increasing doubts about his communications.
Ishiba triggered a sharp yen slide on Wednesday after he said Japan wasn’t ready for higher borrowing costs for the time being, in an unusually direct remark for a prime minister following his meeting with Bank of Japan Governor Kazuo Ueda.