New Prime Minister Shigeru Ishiba’s unexpected warning against raising interest rates is pushing back expectations of another central bank move this year, and raising doubts about his communications.
Ishiba triggered a sharp yen slide on Wednesday after he said Japan wasn’t ready for higher borrowing costs for the time being, in an unusually direct remark for a prime minister following his meeting with Bank of Japan Gov. Kazuo Ueda.
A Bloomberg survey last month showed that 53% of economists forecast the BOJ would push up interest rates for the third time this year in December. But that outlook has now been thrown into doubt.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.