Written by Leika Kihara
TOKYO (Reuters) – Bank of Japan Governor Kazuo Ueda said on Tuesday that he would raise interest rates again as expected if inflation accelerates towards the 2% target.
“If our price outlook changes, that would also be a reason to change monetary policy. However, we have no predetermined ideas about the specific timing or pace of rate hikes,” Ueda told parliament. Ta.
He also said that the Bank of Japan will maintain ultra-accommodative monetary policy for the time being as trend inflation, or the rate of price increase, which is measured by examining a variety of indicators driven by domestic demand, remains “slightly below 2%.” said it was necessary.
Ueda’s remarks came ahead of a two-day Bank of Japan policy meeting that concludes on Friday, where the board is expected to leave interest rates unchanged and announce new quarterly growth and inflation forecasts.
Sources told Reuters that the central bank is expected to raise interest rates again this year from its current level near zero, as it expects inflation to remain near its 2% target for the next three years. will become stronger.
