BOJ's Ueda Vows to Keep Raising Interest Rates Amid Inflation Concerns

Bank of Japan Governor Kazuo Ueda has reaffirmed the central bank's commitment to raising interest rates, citing accommodative financial conditions and concerns about inflation. Speaking at a news conference following the G20 finance leaders' gathering, Ueda stated that the BOJ will continue to monitor price pressures and debate whether upside inflation risks are increasing.

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. According to Reuters, Ueda emphasized the importance of carefully scrutinizing how the cumulative impact of past rate hikes affects the economy.

Ueda also highlighted that underlying inflation is close to the BOJ's 2% target, necessitating attention to inflationary risks when guiding policy.