Bank of Japan Review Committee member Zeng Ichi said on Thursday that the Bank of Japan will continue to raise the benchmark interest rate to ensure that the price trend does not exceed 2%; this statement supports the market's general expectation that the Bank of Japan will raise interest rates next week. Speaking to business leaders in the western Japanese city of Fukui on Thursday, the Bank of Japan will continue to raise policy interest rates and adjust the level of monetary easing since the underlying inflation rate is already very close to 2% and the financial environment has always been relaxed.” “The most important thing going forward is to ensure that the underlying inflation rate does not significantly exceed 2%,” he said. In the past, Bank Zeng was centrist in terms of monetary policy, but recently it has turned hawkish, reflecting a broader shift in the Bank of Japan's overall position of the committee responsible for decision-making. People familiar with the matter revealed earlier this month that the Bank of Japan is inclined to raise the benchmark interest rate by 25 basis points next week. If interest rates are raised, it will mean that the Bank of Japan is speeding up the normalization of monetary policy. In his speech, Mr. Zeng pointed out that the war in Iran has led to a rise in fuel and chemical prices, which has already pushed up the prices of a wider range of commodities. He said that, for example, the increase in freight charges for imported raw materials and the increase in the cost of imported fertilizer are all factors driving up food prices. Zeng Yi said that what is worrying is that the rise in the prices of these products may not be a temporary shock, but rather a longer-term trend, which may further push up overall prices.
Zhitongcaijing · 2d ago
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Bank of Japan Review Committee member Zeng Ichi said on Thursday that the Bank of Japan will continue to raise the benchmark interest rate to ensure that the price trend does not exceed 2%; this statement supports the market's general expectation that the Bank of Japan will raise interest rates next week. Speaking to business leaders in the western Japanese city of Fukui on Thursday, the Bank of Japan will continue to raise policy interest rates and adjust the level of monetary easing since the underlying inflation rate is already very close to 2% and the financial environment has always been relaxed.” “The most important thing going forward is to ensure that the underlying inflation rate does not significantly exceed 2%,” he said. In the past, Bank Zeng was centrist in terms of monetary policy, but recently it has turned hawkish, reflecting a broader shift in the Bank of Japan's overall position of the committee responsible for decision-making. People familiar with the matter revealed earlier this month that the Bank of Japan is inclined to raise the benchmark interest rate by 25 basis points next week. If interest rates are raised, it will mean that the Bank of Japan is speeding up the normalization of monetary policy. In his speech, Mr. Zeng pointed out that the war in Iran has led to a rise in fuel and chemical prices, which has already pushed up the prices of a wider range of commodities. He said that, for example, the increase in freight charges for imported raw materials and the increase in the cost of imported fertilizer are all factors driving up food prices. Zeng Yi said that what is worrying is that the rise in the prices of these products may not be a temporary shock, but rather a longer-term trend, which may further push up overall prices.
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