🔥Internal Voices: Former Deputy Governor of the Bank of Japan Calls for Patience in Rate Hikes
At the critical moment of the Bank of Japan's policy meeting this week, former Deputy Governor Masayoshi Amamiya has issued a cautious voice. He publicly suggested that the central bank should avoid raising interest rates too early to prevent excessive adjustments that could impact economic support.
His core consideration is the level of the 'neutral interest rate.' He believes that maintaining policy patience is crucial while the appropriate level of interest rates remains unclear, as it helps solidify the hard-won foundation of economic growth.
This reminder from a seasoned professional highlights the complexity of Japan's monetary policy normalization path. For the market, this means that even if interest rates are raised, the future path may be smoother and slower than expected.
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