Japan economy broadly in line with outlook since Sept. meeting: BOJ chief
BANGKOK (Kyodo) -- Bank of Japan Governor Kazuo Ueda said Friday that Japan's economic activity has developed broadly in line with the central bank's
Bank of Japan Governor Kazuo Ueda stated on Friday that Japan's economic activity has progressed broadly as per the central bank's expectations since the September policy gathering. The governor indicated that the Bank of Japan (BOJ) would persist in attempting to raise interest rates to fine-tune the extent of monetary support, as underlying inflation is nearing the bank's 2 percent inflation target.
Speaking at a press conference in Bangkok, Ueda, who was attending the Group of 20 finance ministers and central bank governors meetings, emphasized stabilizing inflation around 2 percent as a paramount policy objective for the BOJ. He emphasized the BOJ's unwillingness to permit underlying inflation to exceed that threshold.
The BOJ has been meticulously observing the consequences of the yen's depreciation, Middle East tensions, and AI-related developments on inflationary pressures. With underlying inflation approaching 2 percent and financial conditions remaining accommodative, Ueda affirmed that the BOJ would proceed with rate hikes contingent on economic and price developments.
The timing and pace of these adjustments would hinge on market movements, exchange rates, and an evaluation of risks to the outlook. The BOJ plans to reassess its view on underlying inflation at its upcoming October 29-30 policy meeting, contingent on the information available at the time.
Ueda commented that economic data since the September meeting aligned well with the BOJ's forecast, noting no significant new information to warrant a forecast alteration. When queried about the neutral interest rate, Ueda acknowledged the difficulty in pinpointing an exact level, stressing the necessity of evaluating the collective impacts of previous rate hikes on financial conditions, the economy, and prices.
Atsushi Mimura, Japan's top currency diplomat, accompanied Ueda. Mimura, alongside the BOJ governor, noted that the International Monetary Fund has been striving for years to forge more productive relationships with Southeast Asian nations, including via economic surveillance and technical assistance. Mimura described this week's annual meetings of the IMF and the World Bank as a chance to further bolster these ties, highlighting Japan's longstanding support for the IMF's capacity-building endeavors.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
