Nomura Urges Bank of Japan to Clarify Rate-Hiking Targets on June 16

According to Nomura Research Institute on June 16, the Bank of Japan needs to more clearly articulate how rate hikes will affect the economy compared to historical experience and explicitly define its policy-tightening objectives. To date, the central bank has described policy tightening as an "adjustment in monetary accommodation," but if it incorporates "curbing potential inflation risks" and "anchoring inflation expectations" into its rate-hiking targets, this shift will affect the pace of future hikes and the BOJ's communication strategy.
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