A Bank of Japan board member has signaled that the central bank should consider further interest rate hikes while taking factors such as wage rises and capital investment into account.
Takata Hajime said in a speech in Ishikawa Prefecture on Thursday that if the BOJ confirms companies are continuing with such positive action, it needs to make further adjustments to its monetary easing policy.
Takata touched on the wide fluctuations in stock and currency markets in early August. He said it is necessary to watch their effects closely.
The BOJ policy maker also spoke about the local economy of Ishikawa Prefecture. The region on the Sea of Japan coast suffered enormous damage in a major earthquake on New Year’s Day.
He said many people are still working to rebuild their lives, and a population outflow is accelerating.
Takata said “The Bank of Japan wants to support the rebuilding efforts of local people through ensuring the stability of the financial system in the aftermath of an extraordinary natural disaster.”
He said the prefecture is now on a recovery track, with production of electronic parts and chemicals largely back to pre-quake levels.