One of the Bank of Japan¡¯s most hawkish members indicated that conditions for the central bank¡¯s next interest rate hike could be in place by spring, a comment that is likely to fuel further speculation of an early move.
"It is quite possible that, as early as this spring, the price stability target of 2% can be judged to have been achieved if it¡¯s confirmed with a high certainty that wage growth this year will be in line with the target for the third consecutive year,¡± Naoki Tamura said Friday in a speech at a business conference in Yokohama.
While it¡¯s unclear if the rest of the BOJ board shares Tamura¡¯s view, his remarks suggest that Gov. Kazuo Ueda will probably face increased opposition if he decides to stand pat at the next policy meetings through April. Tamura¡¯s remarks will also likely feed growing market speculation that the next rate hike will come in April, or as early as next month.
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