BOJ’s Ueda to decide on interest rate hike with upside price risks in mind
He said economic data have been in line with the central bank’s outlook
Bank of Japan Governor Kazuo Ueda stated that the central bank's board will decide on policy with upside price risks in mind at a meeting later this month. The gathering is scheduled for September 17-18, as is customary for the central bank's meetings. Ueda, speaking after a Group of 20 finance ministers and central bankers meeting in Asheville, North Carolina, emphasized that the BOJ will conduct a thorough debate on policy.
His comments are expected to reinforce expectations that the Bank of Japan will raise its benchmark interest rate on September 18. Ueda has been cautious in his communication regarding policy decisions following criticism over a July 2024 rate hike that led to market volatility. The governor stressed that economic data have been in line with the central bank's outlook, indicating that the BOJ is on track for further rate increases.
Additionally, Ueda noted that the price trend is very close to the bank's 2 per cent target. The comments come after US Treasury Secretary Scott Bessent urged the BOJ to take appropriate policy action, further fueling market speculation about an imminent move.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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