Japan parliament asks central bank governor Ueda to discuss rate hike
The Bank of Japan surprised markets by raising interest rates to a 15-year high on July 31
JAPAN’S parliament will ask central bank governor Kazuo Ueda to participate in special sessions next week to discuss the decision last month to raise interest rates, officials said on Tuesday (Aug 13).
Ueda will be requested to participate in separate sessions on Aug 23 held by the finance committees of the upper and lower houses.
The Bank of Japan surprised markets by raising interest rates to a 15-year high on July 31 and signalling its readiness to hike borrowing costs further on growing prospects that inflation will durably hit its 2 per cent target.
The decision, coupled with US recession fears, roiled financial markets, triggering the Nikkei benchmark’s biggest selloff since the 1987 Black Monday crash.
The market rout led senior officials from the ruling and major opposition parties to agree to summon Ueda to explain the central bank’s decision. REUTERS
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