BOJ Governor Vows to Keep Raising Interest Rates Amid Rising Inflation

Bank of Japan Governor Kazuo Ueda reaffirmed the central bank's commitment to raising interest rates, stating that it will continue to do so as long as financial conditions remain accommodative. Speaking at a news conference following the G20 finance leaders' gathering, Ueda emphasized the need for the BOJ to carefully scrutinize how its past rate hikes affect the economy.

The BOJ is set to meet later in September, with markets largely pricing in a rate hike amid rising Japanese inflation and a weak yen. According to Reuters, Ueda stated that the central bank will debate whether upside inflation risks are increasing this month. With underlying inflation quite close to the BOJ's 2% target, Ueda noted that the central bank must pay particular attention to inflationary risks when guiding policy.