BOJ to debate rate rise, inflation much closer to 2% target: governor
ASHEVILLE, North Carolina (Kyodo) -- Bank of Japan chief Kazuo Ueda said Tuesday that underlying inflation in Japan is nearing the central bank's pric
Bank of Japan Governor Kazuo Ueda indicated on Tuesday that Japan's underlying inflation is nearing the central bank's 2% price stability target, signaling that the Policy Board will consider raising interest rates during their next meeting on September 17-18. Speaking at a press conference following a Group of 20 finance chiefs meeting, Ueda stated that the Bank of Japan will take into account upside risks to inflation when determining monetary policy.
He expects the central bank to potentially increase its policy rate from the current 1.00% at the upcoming meeting. Ueda highlighted currency movements, Middle East conflicts, and demand for artificial intelligence as factors influencing inflation and future policy decisions. The persistent weakness of the yen has contributed to inflationary pressures in resource-scarce Japan, alongside rising energy prices due to the Iran war.
During Tuesday's Tokyo trading session, the yield on benchmark Japanese government bonds reached 3.000%, the highest level since 1996.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
