“Even if the BoJ were to end our negative interest rate policy, it’s hard to imagine a path in which it would then keep raising the interest rate rapidly,” Uchida said. — Reuters
TOKYO: The Bank of Japan (BoJ) will likely end its risky asset purchases but avoid raising interest rates rapidly when scaling back monetary support, deputy governor Shinichi Uchida says in the strongest hint to date that an end to its massive stimulus is nearing.
Service-sector prices are rising as more companies hike wages and pass on rising labour costs, Uchida said, signalling his growing conviction that conditions for phasing out stimulus were falling into place.
