Delay in Raising Rates Could Cause Turmoil: BOJ Governor

Nagoya, Dec. 1 (Jiji Press)--Bank of Japan Governor Kazuo Ueda said Monday that the central bank delaying an interest rate hike could cause turmoil.

"Being slow to adjust the degree of monetary easing could take inflation to levels as high as in the United States and Europe," Ueda said at a press conference in the central city of Nagoya.

Ueda added that high inflation could force the BOJ to raise interest rates significantly, which "would cause turmoil."

The BOJ is scheduled to hold a policy-setting meeting on Dec. 18-19. During his speech earlier on Monday, the BOJ chief indicated that the central bank will make a decision after assessing moves ahead of next year's "shunto" labor-management wage negotiations.

At the press conference, he emphasized that an interest rate hike would not act as a brake on the economy but would be a "process of loosening the accelerator" for a stable economy and prices.

[Copyright The Jiji Press, Ltd.]