BOJ’s Ueda Notes Progress Toward 2% Inflation Target; No Timing Given for Any Future Interest Rate Hike

The Japan News

16:52 JST, January 23, 2024

Bank of Japan Gov. Kazuo Ueda said at a press conference on Tuesday, “We have confirmed that the economy is progressing in line with our price forecasts,” indicating that he believes the inflation rate is gradually increasing toward its 2% target.

The Bank of Japan decided on Tuesday to maintain its large-scale monetary easing policy at its Monetary Policy Meeting.

In its Outlook for Economic Activity and Prices report released after the meeting, the BOJ revised downward its forecast for the inflation rate in 2024 to 2.4% from 2.8% previously, reflecting a decline in oil prices.

Ueda also stated, “If we reach a situation where we can foresee the sustainable and stable realization of the price increase target in the future, we will consider the pros and cons of monetary easing policy, including negative interest rates.”

However, he declined to give specific timing for a decision on changing the policy, saying, “It is difficult to determine specifically how close we are to the end of monetary easing.”