BOJ Governor Ueda Pledges to Keep Hiking Interest Rates Amid Inflation Risks

The Bank of Japan's Governor Kazuo Ueda has reaffirmed his commitment to raising interest rates, citing accommodative financial conditions and potential inflation risks.

Speaking at a news conference following the G20 finance leaders' gathering, Ueda stated that the BOJ will continue to monitor inflationary pressures and assess whether upside risks are materializing as expected.

The central bank's target is to keep underlying inflation close to its 2% benchmark, and Ueda emphasized the need for careful scrutiny of how past rate hikes affect the economy.

Markets are largely pricing in a rate hike at the BOJ's upcoming meeting in September, amid rising Japanese inflation and a weak yen.