BOJ Governor Ueda: Monetary Policy Enters New Phase, Further Rate Hikes to Continue

PANews, October 16 - According to Jinshi Data, Bank of Japan Governor Kazuo Ueda stated that Japan's underlying inflation is approaching 2%, marking a policy shift, and the central bank's policy has entered a new phase, with further rises in inflation not allowed. As underlying inflation approaches 2% and financial conditions remain accommodative, the BOJ will continue to raise interest rates and adjust its monetary easing policy. The central bank will discuss whether to revise its assessment of "underlying inflation approaching 2%" at upcoming meetings. Ueda noted that Middle East tensions, AI demand, and exchange rates will affect the timing of rate hikes, and the bank has been monitoring the impact of yen weakness and Middle East tensions on inflation. He also said it is difficult to provide a clear statement on Japan's neutral interest rate, and the stability of 2% inflation is becoming increasingly important, with the central bank focusing on consolidating the 2% inflation target. Additionally, Ueda stated that the main takeaway from this week's meetings (including the G20) was exchanging views with other policymakers on the impact of Middle East conflicts and AI demand on global and Japanese economies, with no deviations from the BOJ's basic stance heard at the meetings. He exchanged opinions with Federal Reserve Chair Warsh but would not disclose specifics; he has not been in contact with U.S. Treasury Secretary Bessent since their meeting in Asheville.