A man walks at the headquarters of Bank of Japan in Tokyo, Japan, January 18, 2023.
The central bank would take time to determine whether it can raise interest rates as it waits for evidence that a sustained economic recovery will eradicate Japan's deflationary mindset, he said.
"The key is for the economy to keep recovering," Nakamura told a news conference, when asked about the conditions for ending negative interest rates.
We therefore need more time before shifting to monetary tightening," he said, adding the key was to determine whether companies' growth expectations were heightening.
Markets are divided on whether the BOJ could remove the yield cap before raising short-term rates, ditch both simultaneously, or keep the yield cap when ending negative rates as a precaution against an abrupt rise in long-term yields.
Persons:
Issei Kato, Nakamura, Toyoaki Nakamura, Japan's, we're, Naoki Tamura, Kazuo Ueda, Leika Kihara, Christian Schmollinger, Navaratnam, Gerry Doyle
Organizations:
Bank of Japan, REUTERS, Hitachi Ltd, Thomson
Locations:
Tokyo, Japan, GIFU, Gifu