Japan Panel Urges BOJ to Take Cautious Approach to Rate Hikes

A key panel advising Japan’s government urged the Bank of Japan to consider risks of worsening corporate funding conditions when formulating monetary policy, in a sign that Governor Kazuo Ueda may face pushback if he seeks to raise the benchmark rate next month.

“We expect the BOJ to implement appropriate monetary policy while taking into account funding conditions in financial markets and monitoring price developments,” private sector members of the government’s economic and fiscal policy council said in materials submitted at Monday’s meeting.