Kazuo Ueda, the governor of the Bank of Japan, said the central bank could raise interest rates next month, depending on economic data available at the time. This underlines its determination to steadily increase financing costs from the current level of near zero.
While rising import costs from a weak yen may weigh on household spending, rising wages will support consumption and keep the economy on track for a moderate recovery, he told parliament on Tuesday.
“Our decision on tapering bond purchases and raising rates are two different things,” Ueda said. “There is a chance we could raise rates at our next policy meeting, depending on the economic, price and financial data and information available at that time.”
