BOJ Summary Signals Real Rates Still Low, Pointing to More Hikes

Some members of the Bank of Japan’s board signaled that the country’s real interest rate remains very low during a meeting earlier this month where authorities raised the benchmark rate, suggesting that further increases are likely in store.

“Japan’s real policy interest rate is by far at the lowest level globally,” one of nine board members said at the two-day meeting that concluded on Dec. 19, according to a summary of the discussions released Monday. “It is appropriate for the Bank to adjust the degree of monetary accommodation,” the member said, citing the impact on prices through currency movements.