Japan's FM eyes future rise in interest rates

Japan interest rates: Japan Finance Minister Shunichi Suzuki said there will likely come a time when the country's interest rates will begin to rise and affect the economy through various channels, reported Nikkei. 

"The Bank of Japan (BOJ) holds jurisdiction over monetary policy. But there will be a phase when interest rates go up," Suzuki was quoted as saying in the interview.

On the yen, Suzuki said there were pros and cons to its moves that have varying effects on Japan's exporters and firms reliant on imports.

Negative interest rate 

With inflation having surpassed the Bank of Japan's 2 per cent target for some time, many market players expect the central bank to end its negative interest rate policy by April.

The BOJ is on track to end negative rates in the coming months despite recent data showing the economy slipped into recession, though weak domestic demand means it may seek more clues on wage growth before acting.

As part of efforts to reflate growth and fire up inflation to its 2 per cent target, the BOJ has been keeping short-term interest rates at -0.1 per cent and the 10-year bond yield around 0 per cent since 2016.

(with Reuters inputs)