Central Banks
BOJ Board Member Urges Slow Approach to Interest Rate Hikes
- Dovish member of board sees conditions met for normalization
- Adachi notes overly rapid hikes could bring back deflation
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Bank of Japan Board Member Seiji Adachi emphasized the need for taking a gradual approach to raising the benchmark interest rate, in comments that will likely cement views in the market that authorities will stand pat when they gather to set policy this month.
“What we need to be careful of, in a gradual rate hike process, is that we raise it extremely gradually while keeping financial conditions accommodative” until the price trend gets to 2%, Adachi said Wednesday in a speech to local business leaders in Kagawa, on the island of Shikoku, Japan.