BOJ Governor Ueda Eyes More Rate Hikes on Inflation

Tokyo, January 5 - Bank of Japan Governor Kazuo Ueda stated on Monday that the central bank plans to continue raising interest rates if economic and price developments align with its forecasts, signaling a commitment to further monetary tightening amid signs of sustained inflation and wage growth.

Ueda delivered the remarks in a speech to the Japanese Bankers Association, Japan's banking sector lobby, marking his first public appearance of the year. He highlighted the country's moderate economic recovery in the previous year, despite pressures on corporate profits from higher U.S. tariffs. "Wages and prices are highly likely to rise together moderately," Ueda said, adding that gradual adjustments to monetary support would foster sustained economic growth and help stabilize inflation around the bank's 2 percent target.

The comments follow the BOJ's decision last month to increase its policy rate to 0.75 percent from 0.5 percent, the highest level in 30 years and a key step in unwinding decades of ultraloose policy that included negative interest rates and massive asset purchases. That shift began in March 2024 with the end of negative rates. Even with the recent hike, Japan's...