Japan Interest Rate

Japan's economy is expected to move closer to achieving sustainable and stable 2% inflation, accompanied by wage increases, according to Bank of Japan Governor Kazuo Ueda. In a speech, he explained that as the economy is still progressing toward stable inflation, the central bank will maintain its accommodative monetary policies, keeping the policy rate below the neutral level for now. "If economic activity and prices continue to improve, we will need to raise the policy interest rate and adjust monetary accommodation accordingly," Ueda stated. The top central banker emphasized that the pace and timing of these adjustments will depend on economic output, prices, and financial conditions. He also reiterated the importance of assessing domestic and global risks to evaluate their impact on Japan's economic outlook, prices, and the likelihood of meeting its inflation targets.