Policymakers at Bank of Japan Debating on Rates Hike, Reuters Report

Policymakers at Bank of Japan are debating how soon the central bank would raise interest rates which could even happen before inflation hits target level of 2%, Reuters reported citing sources.

Although a rate hike is far in sight and BOJ to maintain an ultra loose policy for at least a year.

However, BOJ carefully worded promises to keep loose monetary policy but not to keep rates at current low level.

“The BOJ never committed to keep rates on hold until inflation exceeds 2%,” a source familiar with the BOJ’s thinking said, a view echoed by two more sources of Reuters.

“That means theoretically, it can raise rates before inflation is sustainably above the target.”