Will the Bank of Japan raise rates next Monday? Former board member warns: Miss the June meeting, and the economy will be crushed by inflation

📄Full Article· Automatically extracted by trafilaturaGemini 翻譯732 words

Former Bank of Japan Policy Board member Makoto Sakurai warned on May 29 that a June rate hike by the central bank is crucial. Although Tokyo inflation data was disrupted by water fee reductions, core prices may accelerate again later this year, and missing the June window could leave policy chronically behind the inflation curve. (Background: BOJ meeting minutes: 2025 may see gradual rate hikes to 1% if inflation meets expectations, yen breaks below 157) (Context: Former BOJ board member declares "must hike next month"! Missing it could mean being crushed by inflation) Sakurai said on Friday (May 29) that the BOJ is very likely to raise rates at its next meeting on June 19-20, a critical battle for policymakers to avoid falling behind the inflation curve. He served as a BOJ Policy Board member from 2016 to 2021 and has deep insight into the central bank's decision-making dynamics. Sakurai pointed out that if officials fail to act this time, they may miss the rate hike window and be forced to indefinitely postpone the next rate hike due to persistent high uncertainty from the Iran conflict. He emphasized: This meeting is extremely important. The yen's exchange rate is currently hovering near the level at which Japanese authorities intervened in the FX market in May to support the yen, increasing the risk that rising import costs will further push up inflation. Data released Friday showed that the Tokyo inflation gauge closely watched by the BOJ rose 1.3% year-on-year in May, with growth below expectations and marking the smallest increase in four years. The slowdown was mainly due to a temporary water fee reduction measure by the Tokyo metropolitan government. Sakurai noted that the Tokyo inflation data was disrupted by technical factors and would not change the BOJ's policy path, with core inflation likely to accelerate again later this year. The yen currently hovers near the levels seen during the May FX market intervention, meaning the pressure from rising import costs has not been alleviated. If crude oil prices remain elevated due to the Iran geopolitical conflict, imported inflation could further push up domestic prices. BOJ Governor Hachii Ryo hinted after the May rate hike that policymakers will continue to monitor whether the "wage-price" loop is consolidating, as well as the second-order effects of exchange rates on inflation. Sakurai mentioned that Sanae Takaichi, seen as a potential obstacle to rate hikes, has long supported loose monetary policy. However, after U.S. Treasury Secretary Bessent visited Japan this month and signaled broad support for rate hikes, Takaichi may this time allow BOJ policymakers to make their own judgment.

Data Status✓ Full text extractedRead Original (動區 BlockTempo)

🔍Historical Similar Events· Keyword + Asset Matching0 items

No similar events found (requires more data samples or embedding search; currently MVP keyword matching)

Raw Information

ID:10e4db284b

Source:動區 BlockTempo

Published:2026-05-29 07:59:47

Category:bearish · Export Category bearish

Symbols:Unspecified

Community Votes:+0 / −0 · ⭐ 0 Important · 💬 0 Comments