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Former Bank of Japan board member: It is unlikely that the Bank of Japan will raise interest rates in July

Former Bank of Japan board member: It is unlikely that the Bank of Japan will raise interest rates in July

Bitget2024/07/18 01:39

According to data from Jinshi, former Bank of Japan board member Hideo Hayakawa stated that the Bank of Japan is unlikely to raise interest rates this month, but will cut bond purchases more significantly than expected to avoid exacerbating the weakness of the yen.

Hayakawa pointed out that it is difficult to confirm whether recent data truly aligns with the Bank of Japan's expectations for economic development.

He also mentioned that against a backdrop of long-term declining real wages, Japanese consumer spending has been decreasing every quarter, which is an unexpected sign of weakness for the Bank of Japan.

Hayakawa believes that the central bank needs more time to assess economic data from this summer.

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