Official: Bank of Japan Won’t Raise Rates Amid Instability; Deputy Chief Says Central Bank Will Closely Observe Markets
![](https://japannews.yomiuri.co.jp/wp-content/uploads/2024/08/BOJ-Uchida-1.jpg)
Bank of Japan Deputy Gov. Shinichi Uchida during a talk in Hakodate, Hokkaido, on Wednesday
15:59 JST, August 7, 2024
HAKODATE, Hokkaido — The Bank of Japan will not raise interest rates while financial and capital markets are unstable, central bank Deputy Gov. Shinichi Uchida said Wednesday in reference to the recent stock market declines and appreciation of the yen.
“For the time being, monetary easing must continue firmly at the current level,” Uchida said during a talk in Hakodate, Hokkaido.
Financial markets are seeing drastic shifts lately, so the BOJ will be highly cautious and closely watch the impact on the economy and prices, he said.
Regarding foreign exchange rates, Uchida said the yen has become more volatile as the currency appreciates. The stock market, “which affects the outlook for the economy and prices, is an important factor in policy operation,” he said.
On July 31, the BOJ decided to raise its short-term interest rate target to about 0.25%, the second such increase this year. The BOJ said it would raise the target again, on the condition that prices are likely to continue to rise steadily and sustainably along with wage hikes.
“If the outlook changes due to market fluctuations, the path [of interest rates] will naturally change,” Uchida said.
This is the first time that a senior BOJ official has spoken publicly since the appearance of BOJ Gov. Kazuo Ueda at a press conference after the July 31 meeting.
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