BOJ Seeks to Maintain 2% Inflation Target Amid Uncertainty

Bank of Japan Governor Kazuo Ueda reaffirmed the central bank's commitment to maintaining Japan's underlying inflation rate at around 2%.

During a discussion with IMF Managing Director Kristalina Georgieva at an IMF event in Washington, Ueda noted that the BOJ expects underlying inflation to remain near the 2% target, though some upside risks are present.

Ueda emphasized the necessity of sustaining the 2% inflation rate for an extended period through suitable monetary policy adjustments.

Despite rising prices and wages, the BOJ remains uncertain about the economy's ability to maintain this equilibrium over a prolonged period.

Recent BOJ minutes highlight the September rate increase and ongoing inflation risk assessments.