The timing of the next rate hike is data dependent

Bank of Japan (BoJ) board member Asahi Noguchi said on Thursday that “the timing of the next interest rate hike depends on the data.”

Additional quotes

No comment on Prime Minister Shigeru Ishiba’s remarks on monetary policy.

Expect the Bank of Japan (BoJ) to adjust the degree of monetary policy if the economy moves in line with the forecast, even at a very slow pace.

I personally feel that we need to proceed very carefully in adjusting the degree of monetary support.

I can’t say now when the BoJ will raise rates again.

We need to see if consumer sentiment will change to one where they can swallow price increases.

As Governor Ueda said, we have time to analyze economic developments before we think about raising rates.

The current financial environment is easy enough.

The yen’s one-sided plunge seen in July has abated.

The upside inflation risk from the weak yen has receded.

Inflation trend outlook, wages key to BoJ’s upcoming policy decisions.

It is very important that the momentum seen in this year’s wage negotiations is sustained next year.

Think it’s safe to expect the US economy to land soft, fueled by gradually lower rates.

The BoJ’s 2% inflation target is a framework agreed between the BoJ and the government.

We will respect this framework in guiding monetary policy and communicate closely with the government.

We have to recognize politicians’ remarks about monetary policy as probably reflecting the public’s view.

You see the need to improve BoJ communication to avoid a repeat of the confusion that occurred in July.

One idea would be to create opportunities for council members to express their views more often in public.

Japan’s economy can handle a rise in the yen, as long as it is gradual.

Market reaction

The Japanese yen is recovering further ground on the latest comments from the BoJ official, which eases rate hike concerns. USD/JPY was last seen at 146.55, up 0.07% on the day.