Japan parliament asks central bank governor Ueda to discuss rate hike

Japan parliament asks central bank governor Ueda to discuss rate hike

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% target.

© Reuters. FILE PHOTO: Japan's National Diet Building is pictured in Tokyo, Japan, May 31, 2021. Picture taken May 31, 2021.   REUTERS/Kim Kyung-Hoon/File Photo

The decision, coupled with U.S. 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.

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