Bank of Japan Governor Kazuo Ueda has made it clear that the central bank will not allow inflation to rise further beyond its 2% target. Speaking at a press conference in Bangkok on October 16, Ueda emphasized that underlying inflation, excluding temporary factors, is already close to the BOJ's goal. He reiterated this stance following a series of meetings, including a gathering of G20 finance ministers and central bank leaders.
Ueda's comments suggest that the BOJ will continue its policy of raising interest rates to stabilize inflation around the 2% mark. This comes after the bank's September decision to increase its policy rate to approximately 1.25%. The governor also noted that financial conditions remain accommodative, indicating a cautious approach to tightening monetary policy.