Bank of Japan Governor Kazuo Ueda indicated on Tuesday that the central bank is in no hurry to raise interest rates further. What Happened : Ueda mentioned that the BOJ will closely monitor financial markets and global economic conditions before making any decisions, Reuters reported. He emphasized the importance of analyzing October’s service-price data, which will be available in November, to determine if underlying inflation is moving towards the BOJ’s 2% target.
During a news conference in Osaka, Ueda highlighted the need to scrutinize actual data before making any rate hike decisions, suggesting that the BOJ will wait until at least December. The next policy meeting is scheduled for Oct. 30-31, where a quarterly review of growth and inflation forecasts will also take place.
“We must conduct policy in a timely, appropriate fashion without having any pre-set schedule in mind, taking into account various uncertainties,” said Ueda. Ueda reiterated that the BOJ would raise rates if underlying inflation accelerates towards the 2% target. However, he warned of risks such as volatile financial markets and uncertainty about the U.
S. economy’s ability to achieve a soft landing. He noted that the yen’s recent stabilization has reduced the risk of inflation overshooting due to rising import prices.
Ueda stressed the importance of monitoring market developments and overseas economic conditions in setting monetary policy. Ueda’s remarks reflect a shift in the BOJ’s foc.
