At a press conference, Bank of Japan Governor Ueda Kazuo (植田 和男) said that, with underlying inflation approaching 2%, the policy phase had changed, and indicated that accommodative financial conditions are likely to continue. The phase of making flexible decisions on whether to raise rates at each policy meeting is expected to continue.
At a press conference following the Bank of Japan's monetary policy meeting, Governor Ueda Kazuo (植田 和男) pointed out that the phase of policy management had changed as underlying inflation approached 2%. Concern is growing within the BOJ that accommodative financial conditions could persist for an extended period, and Ueda Kazuo (植田 和男) indicated that the phase of flexible responses is expected to continue.
Even after its latest rate hike, the BOJ maintained in its statement its assessment that financial conditions are “accommodative.” It has maintained a cautious stance toward assessing financial conditions, saying that leaving risks that could increase inflationary pressure unaddressed could cause the policy phase to shift again.
Lending by financial institutions, which the BOJ considers important, remains firm. Yagi Minoru (八木 稔), chairman of Shizuoka Bank, pointed to expanding investment and growing AI-related demand, and said funding demand could continue to increase.
As central banks in the United States and Europe enter a rate-hike phase, market expectations that the BOJ will lag in raising rates could become a factor behind yen depreciation, while the importance of adjustments to avoid the economic burden of rapid rate hikes was also highlighted. The BOJ's Tankan survey, surveys of people's views on living conditions and developments in next spring's wage negotiations could be areas of focus.