No interest rate hike amid market volatility, says BoJ Deputy Governor

Shinichi Uchida highlighted the impact of yen strengthening on import prices and overall inflation, as well as the influence of stock market volatility on corporate activity and consumption [View in browser]( [See all newsletters]( 07 August 2024 No interest rate hike amid market volatility, says BoJ Deputy Governor [Bank of Japan Deputy Governor Shinichi Uchida reaffirmed the central bank’s commitment to maintaining current levels of monetary easing, stating that interest rates will not be raised during periods of financial market instability] Bank of Japan (BOJ) Deputy Governor Shinichi Uchida said on Wednesday the central bank won't raise interest rates when financial markets are unstable. The recent strengthening of the yen would affect the BOJ's policy decision because it reduces upward pressure on import prices, and therefore overall inflation, Uchida said. Stock market volatility would also influence the central bank's decision by affecting corporate activity and consumption, he said. - [Explainer: Why did the Indian stock markets crash on Monday]( "As we're seeing sharp volatility in domestic and overseas financial markets, it's necessary to maintain current levels of monetary easing for the time being," Uchida said in a speech to business leaders in the northern Japan city of Hakodate. The BOJ's interest rate path will "obviously" change if market volatility affects its economic and price outlook, its view on risks, and the likelihood of durably achieving its 2% inflation target, he said. "We won't raise interest rates when financial markets are unstable," Uchida said. (Reporting by Leika Kihara; Editing by Tom Hogue) You Might Also Like [Govt mulls diluting up to 5% stake in LIC in FY25]( [Money & Banking]( [Govt mulls diluting up to 5% stake in LIC in FY25]( [Bangladesh unrest brings export of key commodities to a standstill]( [Commodities]( [Bangladesh unrest brings export of key commodities to a standstill]( [Of ₹9.90 lakh crore write off between FY20 and FY24, only ₹1.84 lakh crore was recovered]( [Economy]( [Of ₹9.90 lakh crore write off between FY20 and FY24, only ₹1.84 lakh crore was recovered]( [Tweaking on LTCG norms for real estate on the cards]( [Economy]( [Tweaking on LTCG norms for real estate on the cards]( Stay informed Subscribe to businessline to stay up-to-date with in-depth business news from India [arrow]( Copyright @ 2024, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please try [here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails go [here](