BOJ’s Ueda Reaffirms Support for Accommodative Policy Amid Inflation Concerns
Bank of Japan (BOJ) Governor Kazuo Ueda emphasized on Friday that the central bank will maintain its accommodative monetary policy to sustain economic growth and ensure inflation moves toward its 2% target in a stable manner.
Speaking before Parliament, Ueda noted that the recent uptick in consumer prices above the 2% threshold has been primarily driven by temporary cost-push factors, including rising food and fuel costs, which are expected to subside over time.
His remarks come just a week after the BOJ raised its benchmark interest rate to 0.5%, the highest level in over 16 years. The slightly dovish tone of his comments may help ease concerns about a stronger yen triggering a broader risk-off sentiment in global markets, including cryptocurrencies, as was seen last August.
Despite the commitment to supportive policies, Ueda reiterated that further rate hikes remain on the table if economic conditions align with expectations. According to ForexLive, market participants anticipate the BOJ’s next potential rate increase in July.
