The Bank of Japan's influential deputy governor said on Wednesday that the central bank won't hike interest rates when markets are unstable, playing down the chance of a near-term hike in borrowing costs.
The remarks by Shinichi Uchida, which contrasted with Gov. Kazuo Ueda's hawkish comments made last week when the BOJ unexpectedly raised interest rates, boosted the 225-issue Nikkei average and sent the yen sharply lower.
Uchida said the intense market volatility of the past week could "obviously" change the BOJ's rate hike path if it affects the central bank's economic and price projections and the likelihood of Japan durably achieving its 2% inflation target.