The Bank of Japan raised interest rates again, following its June hike. At a press conference, Governor Ueda indicated that the policy phase had changed and made clear his intention to continue raising interest rates.
The Bank of Japan decided to raise interest rates again at its monetary policy meeting, following its June hike. With the underlying rate of inflation approaching 2%, financial conditions remained accommodative, while the Bank maintained a stance of paying attention to upside risks.
At a press conference, Governor Ueda said that “the policy phase had changed” and indicated that the Bank would continue raising interest rates. This suggests an intention to shift toward stable policy management after reaching the 2% target, which is viewed as a short-term objective.
Looking ahead, the possibility of further rate hikes is expected to remain under discussion, taking into account the pass-through of inflationary pressures and various risk factors. Attention will focus on the Bank of Japan’s next meeting and the market response.