PM Ishiba says Japan not ready for rate hike after meeting BOJ governor
Repeats item that ran Oct 2 with no change to text
Ueda says he told Ishiba BOJ will move cautiously in rate hike
Ueda highlights uncertainties, risks to Japan's economy
Economy minister urges BOJ to be cautious of raising rates
Political dynamics may delay BOJ rate hikes, analysts say
By Leika Kihara and Satoshi Sugiyama
Oct 2 (Reuters) -Prime Minister Shigeru Ishiba said Japan is not in an environment for an additional rate increase, in an apparent effort to shake off his reputation as a monetary hawk, after a meeting with Bank of Japan Governor Kazuo Ueda on Wednesday.
"I do not believe that we are in an environment that would require us to raise interest rates further," Ishiba told reporters on Wednesday night in the most explicit remark to date from a prime minister pushing back against further rate hikes.
The yen weakened after Ishiba's remarks as markets interpreted them as reducing the chance of a near-term interest rate hike. The dollar was last up 0.77% against the yen JPY=EBS at 144.71 yen per dollar.
A majority of economists polled by Reuters on Sept. 4-12 had expected the BOJ to raise rates again by year-end.
Ishiba, who was officially appointed as prime minister on Tuesday, had been seen by markets as endorsing the BOJ's policy normalisation, in part because of his comments to Reuters in August that a gradual hike in ultra-low rates will help boost Japan's profitability.
His comments, as well as his focus on pulling Japan fully out of economic stagnation, underscore the new administration's preference for the BOJ to go slow in hiking rates, analysts say.
Ishiba's newly-appointed economy minister, Ryosei Akazawa, also voiced hope on Wednesday that the BOJ would be cautious about raising rates further.
While the BOJ's current policy rate, at 0.25%, was "abnormal in global standards," Japan's priority was to "pull out of deflation," Akazawa said.
BOJ SET TO MOVE 'CAUTIOUSLY'
Speaking after the meeting with Ishiba, Ueda said he told the premier that the BOJ would move cautiously in deciding whether to raise interest rates further.
"I told the prime minister that we are supporting the economy with loose monetary conditions," Ueda said in his first meeting with Ishiba since he became prime minister.
Ueda added the BOJ will raise interest rates if economic and price developments move in line with its forecast.
"But I said we will adjust the degree of monetary support cautiously, as we can afford to spend time scrutinising (economic) developments," he said.
The BOJ ended negative rates in March and raised short-term borrowing costs to 0.25% in July on the view Japan was making progress towards durably achieving 2% inflation.
Ueda was forced to roll back his remarks, made when the BOJ hiked rates in July, that the bank would keep raising borrowing costs after the hawkish remarks triggered a market rout.
In a speech delivered on Wednesday before the meeting with Ishiba, Ueda said the BOJ will be "extremely" vigilant for the time being to economic fallout from unstable markets and global economic uncertainties.
The BOJ next reviews rates on Oct. 30-31, when the board also releases fresh quarterly growth and price forecasts. It holds another meeting in December.
"The remarks from Ishiba and Akazawa clearly sound negative against a near-term, additional rate hike. A rate hike in October is now out of the question," said Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities.
"The hurdle for another rate hike by year-end has also risen," he said.
Reporting by Leika Kihara and Satoshi Sugiyama; additional reporting by Makiko Yamazaki, Kentaro Sugiyama and Yoshifumi Takemoto; Editing by Tom Hogue, Jacqueline Wong, Barbara Lewis, Alexander Smith, Alexandra Hudson and Timothy Heritage
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إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.
جميع المواد المنشورة على منصة تداولنا مخصصة للأغراض التعليمية/المعلوماتية فقط ولا تحتوي - ولا ينبغي اعتبار أنها تحتوي - على نصائح أو توصيات مالية أو ضريبية أو تجارية، أو سجلاً لأسعار تداولنا، أو عرضاً أو طلباً لأي معاملة في أي صكوك مالية أو عروض ترويجية مالية لا داعي لها.
أي محتوى تابع للغير بالإضافة إلى المحتوى الذي أعدته XM، مثل الآراء، والأخبار، والأبحاث، والتحليلات والأسعار وغيرها من المعلومات أو روابط مواقع تابعة للغير وواردة في هذا الموقع تُقدم لك "كما هي"، كتعليق عام على السوق ولا تعتبر نصيحة استثمارية. يجب ألا يُفسر أي محتوى على أنه بحث استثماري، وأن تلاحظ وتقبل أن المحتوى غير مُعدٍ وفقاً للمتطلبات القانونية المصممة لتعزيز استقلالية البحث الاستثماري، وبالتالي، فهو بمثابة تواصل تسويقي بموجب القوانين واللوائح ذات الصلة. فضلاً تأكد من أنك قد قرأت وفهمت الإخطار بالبحوث الاستثمارية غير المستقلة والتحذير من مخاطر المعلومات السابقة، والذي يمكنك الاطلاع عليه هنا.
