Bank of Japan Deputy Governor Uchida Shinichi has said the BOJ will not raise interest rates when financial markets are volatile.
Uchida stressed the need to ”maintain monetary easing with the current policy interest rate for the time being” in a speech on Wednesday.
He said recent developments in the markets in Japan and overseas “have been extremely volatile.”
The BOJ raised rates last week for the first time since March and investors are paying close attention to its stance on future increases.
Some say that BOJ Governor Ueda Kazuo’s remarks about the possibility of additional hikes is one of the factors driving market volatility.
Uchida said the BOJ is closely monitoring market developments and their impact, and will conduct monetary policy appropriately.
He added that Japan’s economic situation meant the central bank would not “fall behind the curve if it does not raise the policy interest rate at a certain pace.”