Central Banks
BOJ’s Tamura Says Rate Should Be at Least 1% in Second Half of Year
- Tamura says rate should be at least 1% by second half FY2025
- Rate at 0.75% would still be negative in real terms, he adds
The Bank of Japan’s most hawkish board member Naoki Tamura flagged the need for two or more interest rate hikes by early next year to contain upside risks for prices.
“The short-term interest rate should be at the 1 percent level by the second half of fiscal 2025,” up from the current 0.5%, Tamura said Thursday in a speech to local business leaders in Nagano, central Japan. “I think the bank needs to raise this rate in a timely and gradual manner, in response to the increase in the likelihood of achieving the price stability target.”