BOJ Vows to Keep Raising Interest Rates Amid Inflation Fears

Bank of Japan Governor Kazuo Ueda has stated that his central bank will continue to raise interest rates due to financial conditions remaining accommodative. Speaking at a news conference following the G20 finance leaders' gathering, Ueda noted that the BOJ must pay particular attention to inflationary risks when guiding policy.

The governor emphasized that the BOJ's underlying inflation rate is close to its 2% target, and therefore requires careful scrutiny of how 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.