BOJ's Ueda Sets Price Condition for Further Rate Hikes

Bank of Japan Governor Kazuo Ueda stated that any rate hike above 25 basis points (bp) would depend on price conditions during a regular press conference on September 18. Ueda noted that while the degree of monetary easing is gradually shrinking through rate increases, financial conditions remain accommodative.

The BOJ governor pointed out that the underlying inflation rate is approaching 2% and expressed the view that the economy is recovering moderately. He emphasized the importance of communication with the government in policy management.

In related developments, Japan's finance minister stated he would not hesitate to implement further coordinated intervention, while U.S. Federal Reserve Chair cited a strengthening economy as a factor behind rising yields. The dollar-yen pair weakened to 156.50 at one point in response to Ueda's remarks.