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

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ME News message, June 3rd (UTC+8): In his final routine address ahead of a highly anticipated policy meeting, Japan’s central bank governor Haruhiko Ueda stated that the Bank of Japan needs to continue raising interest rates in line with economic conditions and inflation. Haruhiko Ueda said, “For example, if the central bank judges that the likelihood of achieving the baseline scenario increases—meaning that tensions in the Middle East will gradually ease, and against the backdrop of moderate economic growth, the core inflation rate will gradually rise back to around 2%—then I believe the central bank will continue to raise the policy interest rate at an appropriate pace.” His remarks suggest a relatively high likelihood of a rate hike this month, but his wording is not as explicit as it was during the previous two rate hikes. This indicates that Haruhiko Ueda wants to retain a certain degree of flexibility amid increasingly complex and more uncertain Middle East tensions, as well as Japanese Prime Minister Fumio Kishida’s comments on monetary policy. (Source: PANews)
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