BOJ chief warns of 'upside risks' to inflation after 2% target reached
WASHINGTON (Kyodo) -- Bank of Japan Governor Kazuo Ueda warned Friday of "upside risks" to Japan's underlying inflation, which was recently deemed to
Bank of Japan Governor Kazuo Ueda cautioned on Friday about potential upside risks to Japan's underlying inflation, which has recently been deemed to have reached the central bank's 2 percent target. Speaking at an event in Washington, Ueda emphasized the need to maintain the current rate for years to come through suitable adjustments to monetary policy.
During a Q&A session following a lecture at the International Monetary Fund, Ueda noted that while people might not notice rising prices if wages increase, inflation is still perceived as high. He stated that 2 percent inflation has not yet become a social norm in Japan. Ueda suggested that higher energy prices are starting to influence consumer prices in Japan, anticipating further inflation rise from the current rate of about 3 percent early next year.
However, he believed that if stability returns to the Middle East, inflation could revert to 2 percent by 2027 or 2028. Last week, the BOJ reported that underlying inflation had generally reached the 2 percent target after 14 years of unconventional monetary easing. At a policy meeting in Tokyo, Ueda expressed that the central bank must remain vigilant against inflation surpassing the target, leaving the option for another interest rate hike, potentially during its next policy meeting in December.
At the previous policy meeting in September, the BOJ raised its key interest rate to approximately 1.25 percent.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
