At the National Securities Convention, BOJ Governor Ueda Kazuo (植田和男) signaled a continued willingness to raise rates, but made no remarks indicating an October rate hike. In light of uncertainty surrounding the economic and price outlook, he continued to highlight points requiring attention.
In his speech at the National Securities Convention in Tokyo, Governor Ueda Kazuo (植田和男) indicated a policy of continuing to raise the policy rate. However, he said the timing and pace of rate hikes would be considered while examining the likelihood of achieving the economic and price outlooks and the associated risks, and avoided giving any specific indication of an October hike.
He cited the situation in the Middle East, growing AI-related demand and currency fluctuations as risk factors, saying that continued rate hikes required caution. Although some market participants are pricing in an October hike, caution over confirming the timing is expected to continue.
At its September monetary policy meeting, the BOJ raised the policy rate to 1.25%, and Governor Ueda Kazuo (植田和男) again pointed to the need for continued rate hikes in his speech. He emphasized a policy of maintaining accommodative financial conditions, taking into account low real interest rates, demand for funds and lending attitudes.
In the Tankan survey, which indicates corporate sentiment, the business conditions DI for large manufacturers came to plus 24, exceeding the previous reading and reaching a level described as the highest since March 2018.