Bank of Japan Deputy Gov. Toshiro Muto said Friday that that the BOJ will slowly adjust interest rates while closely examining risk factors facing the Japanese economy. "As for monetary policy, we will need to confirm the possibility that a sustainable economic expansion continues with price stability, and will gradually adjust the levels of interest rates on the basis of improvement of the economy and prices," Muto said in a speech at a convention of "shinkin" credit cooperatives.
The deputy governor didn't give any fresh clues as to when the central bank might raise rates next. Market players will be focusing next on the BOJ's semiannual outlook report, which includes forecasts for economic growth and consumer prices on Oct. 31. The BOJ last raised its key overnight lending rate to 0.50% in February.