BOJ Gov. Emphasizes Changes in Conditions for Monetary Policy
Tokyo, Sept. 18 (Jiji Press)--Bank of Japan Governor Kazuo Ueda said Friday that conditions for the central bank's monetary policy management have changed. "We don't assume a specific pace for further interest rate hikes," he told a press conference after the BOJ's decision earlier in the day to raise the policy interest rate by 0.25 percentage point to around 1.25 pct. It was the first int...
Tokyo, September 18 - Bank of Japan Governor Kazuo Ueda emphasized on Friday that the conditions for the central bank's monetary policy management have changed. Ueda, speaking at a press conference following the Bank of Japan's decision to raise the policy interest rate by 0.25 percentage points to around 1.25%, did not specify a particular pace for subsequent interest rate hikes. This marked the first rate increase in three months, the shortest interval between rate increases since Japan's bubble economy era.
Ueda further explained that the Bank of Japan will evaluate the probability of its economic and inflation forecasts coming to fruition, alongside the risks involved, when determining the pace of future rate hikes. He noted that underlying inflation is close to the central bank's 2% target. However, Ueda stressed that it will take time to determine if the underlying price trend can remain stable around the 2% mark.
He stressed the importance of ensuring that underlying inflation does not rise significantly above 2%, as such a development could adversely impact the economy.
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