Bank of Japan Governor Kazuo Ueda has made it clear that he will not accept underlying inflation rising beyond the 2% mark. Speaking to reporters on Friday, Ueda emphasized that underlying inflation is already close to the bank’s target and stressed that any further increase would be unacceptable.
When asked about the potential impact of prices nearing the 2% target on policy management, Ueda was firm in his stance. He stated, "Going forward, underlying inflation is already roughly around 2%, and we cannot tolerate it rising any further." This comment underscores the BOJ’s commitment to maintaining price stability.
The governor’s remarks come at a time when inflation trends are closely watched by markets and policymakers. His statement suggests that the central bank may take action if inflation shows signs of exceeding the 2% threshold, signaling a cautious approach to monetary policy.