BoJ chief hints at rate hike in July

TOKYO: Bank of Japan Governor Kazuo Ueda said the central bank could raise interest rates next month, depending on economic data available at the time, underscoring its resolve to steadily push up borrowing costs from current near-zero levels.

While rising import costs from a weak yen may weigh on household spending, increasing wages will underpin consumption and keep the economy on track for a moderate recovery, he told parliament on Tuesday.

“Our decision on bond-buying taper and interest rate hikes are two different things,” Ueda said. “There’s a chance we could raise interest rates at our next policy meeting, depending on economic, price and financial data and information available at the time.”