A former Bank of Japan board member who just finished his term said that unless U.S. tariffs trigger global market turmoil, the central bank could raise its benchmark rate at its next policy meeting, given Japan’s improving inflation dynamics.
"I would probably vote for a rate hike at the May gathering if proposed,” Seiji Adachi said Wednesday in his first interview following the end of his five-year term last week. "It’s probably better to move now if the financial market is calm.”
Adachi’s comments come at a time when market speculation over a hike at the May 1 conclusion of the next meeting has diminished due to intensified concerns over the potential hit from U.S. tariffs. Still, the state of inflation and other economic metrics in Japan suggests the central bank could possibly make a surprise early move, according to the most recent member to leave the BOJ’s board.
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