BoJ's Muto says rate hikes support growth

A hawkish monetary policy by the Bank of Japan would be consistent with Prime Minister Shinzo Abe's emphasis on pro-growth policies, central bank deputy governor Toshiro Muto told the Nikkei daily on Wednesday 3 January.

Muto told the paper in an interview that there is a "good chance" that the current expansion of the Japanese economy can be sustained as production, income and spending remain sturdy.

"The sluggish consumption stems from temporary factors such as unseasonable weather and consu