BOJ Governor Ueda Stresses 2% Inflation Target Amid Rate Hikes

Bank of Japan Governor Kazuo Ueda emphasized that underlying inflation must not exceed 2% as the central bank prepares for further interest rate increases. He stated this position during a press conference in Bangkok, Thailand, following meetings with finance ministers and central bank leaders from the Group of 20 nations.

Ueda noted that stabilizing inflation near 2% has become a higher priority than previously, indicating the Bank of Japan will continue raising interest rates to address rising inflation. The central bank's policy rate was increased to 1.25% in its September meeting.

Recent BOJ assessments suggest interest rates may need to rise more quickly to manage inflation risks, with policymakers considering accelerated rate hikes due to evolving global conditions and AI-driven economic trends.