MNI BRIEF: BOJ's Ueda Says Future Hikes Up To Econ, Prices

Bank of Japan Governor Kazuo Ueda said on Friday that the timing of future rate hikes will depend on developments in economic activity and prices at each policy meeting.

“It is difficult for the bank to identify any levels of neutral interest rates in advance and the bank will continue to find out the neutral interest rate after carefully monitoring the impact of the rate hike on economy and banks’ lending,” Ueda told reporters, following the Board's decision to lift the policy rate 25 basis points to 0.75%. (See MNI BOJ WATCH: Board To Consider Hike, Maintain Half-year Pace) 

He said the Bank would also continue to closely monitor the likelihood of achieving its price stability target and the risks surrounding the outlook at each meeting before considering further policy rate increases.

Ueda added that real interest rates remain at significantly low levels even after the latest rate hike.

He also said the policy rate of 0.75%, the highest level since 1995, has no particular significance, as economic conditions and inflation dynamics differ markedly from those 30 years ago.