BOJ must raise rates if firms keep spending, says board member Takata

2024.09.04 22:13

KANAZAWA, Japan (Reuters) – Bank of Japan board member Hajime Takata said on Thursday the central bank must keep raising interest rates if it can confirm that companies would continue to increase spending and wages.

“The stock and currency market saw big volatility in early August and the fallout continues. As such, we need to scrutinise market developments and their impact for the time being,” Takata said in a speech to business leaders in the city of Kanazawa.

“If inflation moves roughly in line with forecasts, and companies continue to boost spending, wages and pass on costs through price hikes, then we need to adjust the degree of monetary easing further,” he said.

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