Seiji Adachi, a former member of the Bank of Japan Policy Board, expressed his opinion about a possible increase of the key rate at the May meeting if the situation in the financial markets remains stable. Observing the improving dynamics of inflation, coming close to the Central Bank's target level of 2%, he believes it is appropriate to consider raising the interest rate.
Analyzing the current situation, Adachi noted the growth of long-term inflation expectations among businesses, reaching the highest values since 2014. At the same time, the impact of US tariffs on the Japanese economy requires further assessment, given its potential influence on investment activity and wage dynamics.
Junko Koeda, who recently replaced Adachi on the Board, also does not rule out a possibility of another step in the cycle of monetary policy tightening. However, representatives of the central bank emphasize that the final decision will be made after a thorough analysis of all incoming data on the economic situation in the country.