Board member Naoki Tamura voted against the stand-pat decision, while proposing a rate hike to 0.5%. He said that the economy and prices are moving in line with expectations, and there are increasing upside risks for inflation. Although he was voted down by the rest of the board, his proposal suggests the board may be gearing up toward its next hike.
The Bank of Japan (BOJ) kept its monetary policy settings unchanged as it waits a little longer before its next move, with a dissenter’s proposed rate increase suggesting momentum for another hike is building.
Governor Kazuo Ueda’s policy board left its benchmark rate at around 0.25%, according to a statement Thursday, an outcome expected by more than half of economists surveyed by Bloomberg. The yen (JPY) extended its weakening to more than 1% against the dollar (US$) after Ueda said that more data is needed for the rate decision including on wages.
