Bank of Japan Governor Kazuo Ueda: Inflation target is approaching, will seek further rate hikes

PANews December 25 News: Bank of Japan Governor Kazuo Ueda stated on Thursday that the central bank is gradually approaching the 2% inflation target and reiterated its stance to seek further interest rate hikes. In his speech, he said, “Against the backdrop of a tightening labor market, corporate wage and pricing behaviors have changed significantly in recent years, and the 2% price stability target accompanied by wage growth is steadily approaching.” He expressed confidence in Japan’s wage-price dynamics, noting that “the likelihood of Japan’s economy returning to the so-called zero-normal state (where wages and prices are almost unchanged) seems to have significantly decreased.” Ueda also indicated that if economic and price forecasts meet expectations, the central bank will further adjust monetary policy. He added that adjusting monetary policy at an appropriate pace will help the Bank of Japan smoothly achieve its inflation target, promote long-term growth, and lay a foundation for businesses to build confidence and conduct operations.