BOJ Vows to Press On With Rate Hikes Amid Inflation Fears

Bank of Japan Governor Kazuo Ueda reaffirmed his commitment to raising interest rates on Tuesday, citing accommodative financial conditions and inflation concerns. Speaking at a news conference following the G20 finance leaders' gathering, Ueda stated that the central bank will debate whether upside inflation risks are increasing this month.

The BOJ's primary focus is on maintaining price stability, with underlying inflation hovering close to its 2% target. As such, the governor emphasized the need for careful scrutiny of the cumulative impact of past rate hikes on the economy.

Markets are largely pricing in a rate hike ahead of the central bank's September meeting, amid rising Japanese inflation and a weak yen. This has led to increased expectations that the BOJ will take further action to counter these pressures.