BOJ's Ueda Signals Interest Rate Hikes Amid Upside Price Risks

Bank of Japan Governor Kazuo Ueda indicated that the central bank's board will consider interest rate hikes at its upcoming meeting, taking into account potential upside price risks. The BOJ is set to gather on September 17-18, and Ueda emphasized the need for careful consideration.

Economic data has been in line with the BOJ's outlook, suggesting further rate increases may be necessary. Ueda also noted that the current price trend is very close to the central bank's 2% target.

The governor avoided directly addressing market expectations, which imply a roughly 99% probability of a September hike. However, his comments reinforced speculation about an imminent interest rate increase.