Bank of Japan Governor Kazuo Ueda emphasized the need to stabilize inflation at around 2 percent during a press conference on Friday, hinting at potential further interest rate hikes to prevent price overshooting. The central bank's monetary policy will now prioritize anchoring inflation at this level, with close monitoring of economic factors.
Earlier on Friday, the BOJ confirmed that underlying inflation had generally reached its 2 percent target, maintaining the benchmark interest rate at approximately 1.25 percent. Ueda noted that all Policy Board members agreed inflation aligns with the 2 percent goal.
However, Ueda stressed the importance of ensuring inflation remains stable and sustainable at the 2 percent mark. He declined to comment on whether the BOJ and the government might review their joint statement, which has guided monetary policy aimed at overcoming deflation.