BOJ’s Ueda says unclear how long 2% inflation rate will remain
Gov. Kazuo Ueda indicated an awareness that the goal had been reached hasn't yet become embedded among the broader Japanese public.
Bank of Japan Governor Kazuo Ueda stated that while Japan's inflation rate has reached the policymakers' target of 2%, it remains uncertain how long this rate will persist, and it has not yet become ingrained in the general public's perception. Speaking at a question and answer session following a speech at the International Monetary Fund's headquarters in Washington, Ueda expressed that they have reached a state of equilibrium, but there is still ambiguity regarding whether this equilibrium can be sustained in the long term.
Ueda's comments came a week after the Bank of Japan announced that underlying inflation had reached the 2% target for the first time since the goal was established in 2013. He did not provide any specific guidance on the central bank's potential future actions regarding interest rate hikes during his discussion with IMF Managing Director Kristalina Georgieva.
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