Japan’s Nagahama expects BoJ to raise interest rates again at the end of the year

Dhwani Mehta FXStreet

Toshihiro Nagahama, a key private-sector member on Japanese Prime Minister Takaichi's Council on Economic and Fiscal Policy, comments on the Bank of Japan’s (BoJ) monetary policy decision.

Key quotes

Personally, feels that the June rate hike was the appropriate decision.

Delaying rate hikes would cause an excessive decline in the Yen currency and hurt households more.

Expect BoJ to raise interest rates again at the end of the year.

Then again, around the summer of next year, before pausing.

BoJ should continue to raise interest rates at a moderate pace.

The appropriate pace can be said to be once every six months, so that it won't hurt domestic investment

BoJ rate hikes are important to rectify any excessive weakness in the Yen currency.

Market reaction

The Japanese Yen (JPY) is drawing further support from these comments, dragging USD/JPY to the lower range of intraday trading near 162.15, as of writing, down 0.20% so far.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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