According to a report by Reuters, former member of the Monetary Policy Committee of the Bank of Japan, Makoto Sakurai, stated that the Bank of Japan is likely to raise interest rates in June or July and seeks to increase them to at least 1.5% over the next two years. He pointed out that wider wage increases, the continuing rise in prices, and Japan's robust economic growth provide the central bank with the space to steadily raise interest rates.
He stated that the Bank of Japan's interest rate hike this month makes him feel that the central bank will seize any opportunity to raise rates without delay. He also mentioned that if action is intended before the uncertainty of domestic politics caused by the July House of Councillors election, the central bank may have the opportunity to bring forward the next interest rate hike date to April. If the economy meets forecasts, the Bank of Japan is likely to raise rates to 0.75% in June or July, but the timing may be affected by domestic politics.
The Bank of Japan will hold a monetary policy meeting on March 18 to 19, followed by another meeting on April 30 and May 1, at which time the latest economic growth and inflation forecasts will be presented.
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