BOJ Chief Says Underlying Inflation 'Quite Close' to Price Goal
Ueda said a tight labor market and strong AI demand are lifting prices as the BOJ weighs when to raise rates again.
- On Monday, Bank of Japan Governor Kazuo Ueda said underlying inflation is "quite close" to the central bank's 2 per cent target, citing strong global AI demand boosting exports and inflationary pressure.
- Rising raw material costs from the Middle East conflict and a tight job market are pushing up inflation, Ueda noted, alongside demand-driven pressure from moderate economic recovery.
- Last week, the International Monetary Fund urged the BOJ to keep raising rates and requested the government lay out a medium-term fiscal framework to soothe market concerns about funding spending plans.
- Prime Minister Sanae Takaichi dismissed suggestions her administration triggered market selloffs, stating, "We will meticulously scrutinise the size of fiscal spending and appropriately control the size of debt issuance."
- The BOJ holds a two-day policy meeting concluding October 30; many market players expect rates to remain steady at 1.25 per cent but watch for hints of a 1.5 per cent hike in December.
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Business Times
PressNewsAgencyBOJ chief says underlying inflation ‘quite close’ to price goal
‘Very strong’ AI demand boosts capex, exports, Ueda adds; his remarks come ahead of the central bank’s key meeting in October Read more at The Business Times.
BOJ chief says underlying inflation 'quite close' to price goal
TOKYO, Oct 19 : Bank of Japan Governor Kazuo Ueda said on Monday underlying inflation is "quite close" to the central bank's 2 per cent target with strong global AI demand adding to inflationary pressure from a tight job market.The remarks came ahead of the central bank's key policy meeting later this month,
BOJ Governor Ueda says underlying inflation ‘quite close’ to 2% target
TOKYO, Oct 19 (Reuters) - Bank of Japan Governor Kazuo Ueda said on Monday underlying inflation is "quite close" to the central bank's 2% target, heightening the importance of anchoring inflation around that level. Speaking in parliament, Ued...
Bank of Japan Governor Ueda said that while demand for artificial intelligence is supporting investment and exports, it is also pushing prices higher. With the need to keep inflation around the target level coming to the forefront, the timing of interest rate hikes is back on the agenda.
Underlying inflation is “quite close” to the Bank of Japan’s 2 percent target, Bank of Japan Governor Kazuo Ueda said on Monday, according to Reuters.
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