BOJ Board Discussed Impact of US Econ, Policy at October Meeting, Opinion Summary Shows

By Megumi Fujikawa

TOKYO--The Bank of Japan's policy board discussed the potential impact of changes in the U.S. economy and policies as Japan moves toward further interest rates increases, according to a summary of opinions from its latest October meeting released Monday.

"The bank should consider further rate hikes after pausing to assess developments in the U.S. economy," one of the nine policy board members said at the meeting held on Oct. 30-31.

BOJ Gov. Kazuo Ueda said at a news conference after the meeting that uncertainties surrounding overseas economies are starting to clear.

"It is important for the bank to communicate effectively its core message that 'if the outlook for economic activity and prices will be realized, the bank will continue to raise the policy interest rate accordingly,'" the summary quoted a member as saying.

As the economy is showing signs of improvement and the yen's weakness is likely to pressure import prices higher, some economists expect the central bank to raise its policy rate to 0.5% from 0.25% currently, as soon as at its next meeting in December.

But the summary showed some caution. Because there's a lack of clarity over how higher rates impact the economy, "it is therefore necessary for the bank to take time and exercise caution when raising the policy interest rate," one member said.

The BOJ's summary of opinions doesn't identify individual speakers.

Write to Megumi Fujikawa at [e-mail]

(END) Dow Jones Newswires

11-10-24 2001ET