Bank of Japan Board Member Urges Caution on Interest Rate Hikes

Toyoaki Nakamura emphasizes economic uncertainty and weak consumption as key reasons to proceed carefully with monetary policy adjustments.

Toyoaki Nakamura, a dovish member of the Bank of Japan's board, has called for caution in raising interest rates, citing weak consumption and fragile wage growth.
Nakamura expressed concerns that Japan's inflation may fall short of the BOJ's 2% target in the coming years due to slowing global growth and rising living costs impacting households.
Smaller firms in Japan are reportedly struggling to sustain profitability and increase wages, which Nakamura views as critical for durable economic recovery.
Nakamura's stance highlights a division within the BOJ board, contrasting with other members who are more eager to raise rates soon, creating uncertainty over a potential December hike.
The BOJ's next policy meeting on December 18-19 will be closely watched, with economists divided on whether another rate hike will occur this month or in early 2025.