BOJ policymakers discussed need for caution in rate hikes, Sept summary shows

TOKYO : Bank of Japan policymakers discussed the need for caution over near-term interest rate hikes with some voicing concern over unstable financial markets and the U.S. economic outlook, a summary of their September meeting showed on Tuesday.

“Overseas economic uncertainties have heightened. We should scrutinise overseas and market developments closely for the time being. In terms of further adjustment to our monetary support, it should be done when such uncertainties are reduced,” one member was quoted as saying.

Given economic and market uncertainties, it was undesirable for the BOJ to raise rates further at this point as doing so might suggest the central bank was shifting to a full-fledged monetary tightening cycle, another opinion showed.

At the September meeting, the BOJ kept short-term rates steady at 0.25 per cent and its governor said it could afford to spend time eyeing the fallout from global economic uncertainties, signalling it was in no rush to raise borrowing costs further.