Ueda: BoJ to Continue Raising Interest Rates
Bank of Japan Governor Kazuo Ueda emphasized that the direction of monetary policy remains upward. In his statement at the Kisaragi-kai meeting on Wednesday, Ueda stated that the BoJ's fundamental stance is to continue raising the policy rate in line with developments in the economy, prices, and financial conditions.
Ueda added that the BoJ will raise interest rates at an "appropriate pace" if the central bank assesses a greater likelihood of the baseline scenario being realized. This means that the tightening path remains open, but the tempo will be adjusted based on data and risk assessments.
He also highlighted the dynamics of energy prices. According to Ueda, the increase in oil prices this year is not as large as the first oil crisis, but its magnitude is comparable to other shocks. The BoJ sees the increase in crude oil as having the potential to push up prices not only for energy but also for prices in general, especially for various goods.
Amidst the still-unclear situation in the Middle East, Ueda emphasized the need to assess the balance of risks. If the risk of rising prices is deemed greater than the risk of declining economic activity, the BoJ needs to thoroughly discuss the pros and cons of future policy actions. (asd)
Source: Newsmaker.id
