Bank of Japan Governor Kazuo Ueda: Continued rate hikes are necessary to curb inflation

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Mars Finance News: On June 3, Haruhiko Ueda, the governor of the Bank of Japan, said in his final routine remarks ahead of a highly anticipated policy meeting that the Bank of Japan needs to continue raising interest rates in line with the state of the economy and inflation. Ueda said, “For example, if the central bank judges that the likelihood of achieving the baseline scenario will increase—that is, if tensions in the Middle East will gradually ease, and with moderate economic growth, the core inflation rate will gradually rise back to around 2%—then I believe the central bank will continue to raise policy interest rates at an appropriate pace.” Analysts said Ueda’s remarks today indicate a relatively high likelihood that the Bank of Japan will raise interest rates this month, but his wording is not as explicit as it was during the previous two rate hikes. This suggests that Ueda wants to retain a certain degree of flexibility amid the Middle East situation becoming increasingly complex, uncertainties intensifying, and the stance on monetary policy taken by Japanese Prime Minister Sanae Takaichi.
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