Bank of Japan Governor Kazuo Ueda made a strong statement on Friday, emphasizing that underlying inflation cannot be allowed to rise further above 2%. His remarks came during a gathering of global finance leaders in Bangkok, where he addressed concerns about price gains nearing the central bank’s target.
Ueda’s comments reinforced expectations that the BOJ may raise interest rates in the coming months. He stated that underlying inflation is already around 2%, and any further increase would be intolerable. His words suggest a firm stance against allowing inflation to exceed the BOJ’s target.
The governor’s remarks were a response to a question about whether price gains nearing the target would impact policy management. His answer left little room for ambiguity, signaling that the BOJ is prepared to take action to keep inflation in check.