Central Banks
BOJ Rate Hike Won’t Derail Budgets, DPP Official Indicates
- Over half of economists expect BOJ’s next hike in December
- DPP has gained leverage over ruling coalition in passing laws
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The Bank of Japan likely won’t change policy abruptly enough to derail budget discussions, according to a senior member of an opposition party whose support is needed by Prime Minister Shigeru Ishiba’s minority government.
While the BOJ shouldn’t rush any interest rate hikes when the economy is at a renewed risk of falling back into deflation, the central bank is unlikely to do something that interferes with the formulation of the budget, Democratic Party for the People tax chief Motohisa Furukawa said in an interview on Wednesday.