Japan ruling party executive urges BOJ to clarify rate-hike resolve, Nikkei says

TOKYO : The Bank of Japan should more clearly indicate its resolve to normalise monetary policy, including through steady interest rate hikes, senior ruling party official Toshimitsu Motegi was quoted as saying by the Nikkei newspaper on Monday.

“Excessive yen declines are clearly negative for Japan’s economy,” Motegi, who is secretary-general of the ruling Liberal Democratic Party, was cited as saying by Nikkei.

To arrest such unwelcome yen falls, the BOJ should clearly communicate its intention to shift away from massive stimulus, Motegi said.

He also said Japanese firms can probably swallow the impact of tighter monetary policy, Nikkei reported.

The remarks came ahead of the BOJ’s two-day policy meeting that ends on July 31, when the board will likely debate whether to raise interest rates from current near-zero levels.