By Bahattin Gonultas
ISTANBUL (AA) - Tightening monetary policy will continue if inflation moves in the right direction, said Bank of Japan's (BoJ) Deputy Governor Ryozo Himino on Wednesday.
Himino signaled that further interest rate hikes would be considered if the economy and inflation move in line with the central bank's forecasts at a press conference after meeting with businesspeople in the city of Kofu.
“There is no change in our stance that we will adjust monetary policy if economic activity and prices are likely to meet forecasts,” said Himino.
BoJ, which raised interest rates for the first time in nearly 17 years, raised the policy rate to 0.25% at the end of July, the highest level in the last 15 years.
In Japan, the Nikkei 225 index recorded the biggest decline since 1987 with 12.40% with the “hawkish” BoJ and increasing recession concerns in global markets and then entered the recovery process.
On the other hand, the markets are expecting another rate hike from the BoJ this year, although it is now expected that this may take place in December, not October as previously expected.
The economy expanded by 0.8% in the second quarter, above expectations of a 3.1% improvement and a 0.5% increase from the first quarter.
*Writing by Sahika Malkoc