Forex
BOJ Keeps Rates Steady, but Ueda Signals Potential for Faster Hikes
The Bank of Japan (BOJ) kept its policy rate at 1.0%, but Governor Kazuo Ueda signaled the possibility of additional interest-rate increases due to inflation risks.
In a press conference, Ueda highlighted that crude oil prices, artificial intelligence-related demand, yen weakness, and rising wages and prices are structural sources of price pressure.
The BOJ's underlying inflation gauge is running above its 2% price-stability target and faces a risk of overshooting to the upside, according to Ueda.
He added that policymakers need to be more conscious than before of upside inflation risks, reinforcing the case for further rate increases.