BOJ’s Ueda: States that interest rates will increase if the economic forecast improves, and inflation is expected to pick up again

Bank of Japan Signals Possible Further Rate Increases

Kazuo Ueda, Governor of the Bank of Japan, emphasized the central bank’s inclination toward tightening monetary policy, indicating that additional interest rate hikes are likely if upcoming economic data bolster confidence in the bank’s projections for growth and inflation. According to remarks shared with Yomiuri, Ueda explained that the BoJ intends to keep raising rates if the likelihood of achieving its economic and price targets improves.

Although core inflation has not yet consistently reached the 2% goal, Ueda stated that the bank’s policy decisions will aim to guide inflation steadily toward that level, while avoiding persistent overshooting. He also noted that the Bank remains attentive to incoming data as it shapes its future policy direction.