BOJ Raises Interest Rates, But What Signals Does Ueda Give?
In a BOJ press conference today (December 19, 2025), Governor Kazuo Ueda confirmed that the BOJ raised interest rates by 25 basis points to 0.75%—the highest level in about three decades—but he emphasized that this move was part of a gradual and cautious normalization process, not a sudden shift to tighter policy.
Ueda said the next decision would depend heavily on economic and inflation data, as estimates for Japan's "neutral interest rate" remain elusive and range widely. He also implied that interest rates are still not necessarily in the neutral zone, and the BOJ will assess the impact of policy through various indicators such as real interest rates and lending conditions.
Ueda also mentioned the yen as a factor to monitor, as a weaker yen could add to price pressures, while the main focus going forward remains on the upward trend in wages—if wage momentum remains strong and widespread, there is room for further rate hikes, but the BOJ has not yet locked in a timetable. (az)
Source: Newsmaker.id
