BOJ chief vows to keep raising rates, anchor inflation around target
TLT•Bank of Japan Governor Kazuo Ueda said the central bank will keep raising rates and focus on anchoring underlying inflation around its 2% target. The BOJ will issue new quarterly forecasts at its October 29-30 meeting, but Ueda gave no clear clues on the timing of future hikes.
1. Inflation remains the focus
Ueda said the BOJ cannot tolerate underlying inflation accelerating beyond its 2% target and that anchoring inflation has become a major policy objective. He said recent domestic data and discussions with global policymakers suggested economic and price developments were broadly in line with the bank’s projections.
2. Forecasts due this month
The BOJ board is due to issue fresh quarterly growth and inflation forecasts at its October 29-30 policy meeting. Ueda said the bank would consider the need to anchor inflation at the meeting, but offered no clear indication of the pace or timing of future rate increases.
3. Global inflation risks
Ueda said some policymakers viewed global AI demand as stronger than the BOJ had expected. The article said AI-related demand, energy costs and rising import prices were among inflation risks under discussion, while many BOJ officials reportedly preferred to wait for more data after the September rate increase.
