9 september 2024 : The Bank of Japan might raise interest rates by the end of the year, according to Tomoko Amaya, a former senior official at Japan’s financial watchdog. Speaking at the Bund Summit in Shanghai, Amaya noted that recent market turbulence has not significantly affected overall confidence.
She emphasized that while market fluctuations are notable, the key factor is maintaining confidence, and with stability returning, a rate hike remains feasible this year. Such a move could benefit banks by enhancing their profit margins.
BOJ Deputy Governor Shinichi Uchida had previously indicated that rate hikes would not occur amidst market instability, a stance supported by Governor Kazuo Ueda. However, the BOJ is prepared to raise rates if economic and price data align with its forecasts.
Amaya, who served as vice minister for international affairs in 2021 and is now an executive adviser at Norinchukin Research Institute, suggested that while Japanese banks are adjusting to the potential rate hikes, they could still benefit from higher interest rates.