Bank of Japan Gov. Kazuo Ueda hinted that more interest-rate hikes are coming, saying that figuring out the right size and timing for further normalization of Japan’s easy monetary policy is his over-arching preoccupation.
"I think about what would be the right size of normalization in total going forward, and how best to allocate that total rate hikes across time," Ueda said in answering questions Wednesday at an event in Washington, where he’s attending annual meetings of the IMF and World Bank. "That keeps me awake 24/7."
Ueda’s remarks add to signs that the bank is seeking the right timing for another rate hike, which most BOJ watchers expect will come by early next year. The governor also indicated that simply waiting isn’t necessarily the right solution — as sending only cautious messages in the face of uncertainty could lead to undesirable market positioning.
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