BOJ chief vows to keep raising rates, debate price risks this month
Tokyo, September 1: Bank of Japan Governor Kazuo Ueda has affirmed that the central bank will persist in increasing interest rates, despite financial conditions remaining accommodating. Ueda, speaking at a news conference following the G20 finance leaders' gathering, hinted at deliberations this month regarding whether inflation risks on the upside were becoming more pronounced.
He emphasized the importance of closely monitoring inflationary risks in formulating policy, given that underlying inflation is nearly in line with the BOJ's 2% target. However, Ueda also stressed the need to carefully evaluate the cumulative impact of previous rate hikes on the economy. Data from the BOJ's meeting in July indicates that economic and price conditions have been progressing in line with the bank's July projections.
Ueda stated that the bank will rigorously examine whether the economy and prices are adhering to its baseline scenario, alongside assessing potential risks. The BOJ will deliberate on these aspects extensively during its forthcoming policy meeting scheduled for September 17-18. When questioned about market speculation on a possible rate hike at the upcoming meeting, Ueda declined to provide further comment.
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