BOJ Governor Says Rate Hikes to Continue If Economy and Inflation Develop as Expected

(Seoul=Yonhap Infomax) Ji Yeon Kim – Kazuo Ueda, Governor of the Bank of Japan (BOJ), stated that the central bank will continue raising interest rates if Japan’s economy and inflation progress in line with expectations.

Speaking before the National Diet on the 21st, Ueda said, “The likelihood of our projections being realized is increasing,” adding, “We are strengthening expectations for a gradual normalization of monetary policy.”

He explained that the decision to keep rates unchanged at last month’s monetary policy meeting was intended to allow more time to confirm whether companies’ willingness to raise wages would persist.

Ueda further noted, “The BOJ is closely monitoring early signals from next year’s wage negotiations.” Wage growth is a key factor in determining whether inflation can be sustained.

He also emphasized that the BOJ will fully utilize new information obtained from the upcoming regional branch managers’ meeting ahead of the next policy meeting.

Ueda’s remarks reiterated the BOJ’s existing stance that wage and price trends will be the main determinants for future rate hikes.

Following his comments, movements in the dollar-yen exchange rate were limited.

As of 11:43 AM, the dollar-yen exchange rate was trading at 157.397 yen, down 0.11% from the previous session.

jykim@yna.co.kr

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