BOJ Minutes: Real Rates Exceptionally Low, FX Hurts Smaller Firms
One BOJ board member warned Japan's real interest rate is exceptionally low globally and must be adjusted given upside inflation risks. Another noted that currency weakness is pushing up import costs, hurting smaller companies.
Minutes from the Bank of Japan's latest meeting revealed a divergence in views. One member argued that the country's real interest rate is exceptionally low by international standards and that policy should be adjusted in light of upside inflation risks.
Separately, another member highlighted that foreign exchange factors are driving up import prices, placing a particular burden on smaller firms. The discussions underscore ongoing internal debates about the pace of normalization, even as the central bank maintains its ultra-loose stance.
Source: First Squawk