Central Banks
BOJ’s Next Rate Hike Is Likely in June, Ex-Official Momma Says
- Momma says annual wage deals of 5.7% needed to spur early move
- Says BOJ likely welcomed Trump’s warning on yen manipulation
The Bank of Japan will probably wait until the middle of the year before raising interest rates again as it looks to maintain a pace of one hike every six months despite recent market speculation of an earlier move, a former BOJ official said.
“June is the favored option in my base case,” Kazuo Momma, former executive director in charge of monetary policy at the central bank, said in an interview Monday. “It may get pushed back to September or later” depending on economic and financial market conditions, he added.