(Reuters) -Bankan Japan raised interest rates on Friday to its most of the global financial crisis in 2008 and revised its inflation forecasts, undergoing its confidence that growing wages would maintain inflation stable about its goal of 2%.
At his two-day meeting that ended on Friday, battle increased his short-term policy rate from 0.25% to 0.5% Japan did not see in 17 years. It was made in a vote of 8-1 with a member of the Toyoaki Nakamur Committee.
The following are the passages from the Boy Governor’s comment to Kazu Udede at his press conference after the meetings, which was carried out in Japanese, as translated by Reuters:
A hike on a salary
“Many companies say that they will continue to increase wages … Different data show that the US economy is in solid form. The markets were stable that the wide direction of Trump’s policies become clearer. While the growth price has been reduced on an annual basis -nides, weak jen stimulates imports of imports. “
Policy rate
“There is no change in our opinion of increasing the rate of our policy and adjusting the degree of financial support if economics and prices move in accordance with our forecasts.
“The time and pace of adaptation of financial support at the time will depend on economic and price development. We have no pre -set idea.
Sharp upgrade of inflation forecast
“The rise of the fundamental inflation is moderate. I don’t think we are seriously behind the curve in solving inflation.”
The influence of Trump’s tariff policies
“There is very great uncertainty to the proportion of tariffs. Once there is greater clarity, we will take this into our forecasts and reflect them in deciding.
“It is necessary to increase interest rates in accordance with the development in the economy and prices. We also have to see how our rise rates affect the economy. Therefore, it is appropriate to gradually increase interest rates in several stages while carefully examining the influence of our moves.”
Terminal
“There is no change in our opinion on the neutral rate, which is spreading into a wide range in our estimate. The estimated belt has not changed much. In terms of distance from the neutral rate, it is true that it shortened after increasing the rate of up to 0.5%.
