BOJ Governor Ueda's comments at news conference

In a recent news conference, Bank of Japan Governor Kazuo Ueda announced a rate hike to a 31-year high, indicating the central bank's readiness to combat persistent inflation driven by soaring oil prices. However, the announcement did not have the desired effect on the yen, which fell in value due to a lack of explicitly hawkish guidance and two dissenting votes from members of the board.

Ueda emphasized that the bank would act pre-emptively if inflation risks materialized, stating that they do not have a predetermined pace for future rate hikes. He highlighted that recent wage data showed strong upward pressure on prices, which could contribute to underlying inflation reaching the 2% target. Ueda stated that while they are still at a phase of carefully examining data, they do not want to move slowly in addressing inflation.

He also noted that the policy actions of other central banks could have significant impacts on Japan's economy through currency moves.