BoJ governor says interest rate move will depend on data

Bank of Japan Governor Kazuo Ueda stated that the timing of any monetary policy adjustments will depend on the evolving economic activity, price trends, and financial conditions. He emphasized that the central bank would proceed cautiously with policy changes to avoid disrupting the economy.

BoJ governor says interest rate move will depend on data

Ueda reiterated that, if economic and inflation data align with expectations, the BOJ will continue its gradual interest rate hikes while closely monitoring various risks, particularly those related to the US economy. He also noted that markets remain highly sensitive to economic indicators and geopolitical developments.

GDP may rise by 1%

On Japan's domestic outlook, Ueda projected real GDP growth of around 1% in the coming fiscal years, driven by a cycle of rising incomes and increased spending. Business sentiment has improved, with corporate profits on the rise. Regarding inflation, Ueda forecasted moderate increases, with underlying inflation gradually climbing as the output gap narrows and medium- to long-term inflation expectations rise.