BoJ Governor Kazuo Ueda warned that maintaining ultra-loose monetary policy for an extended period could introduce risks to achieving inflation target in a stable manner. Minutes from his meeting with the Council on Economic and Fiscal Policy recorded Ueda stressing that stable achievement of the 2% goal required both pushing inflation up and preventing an unintended overshoot.
He noted that “keeping policy too loose for too long carries risks,” framing the central bank’s current approach as one aimed at ensuring a “smooth landing” while carefully assessing economic conditions.
The meeting also marked the first public appearance of Ueda alongside Prime Minister Sanae Takaichi since she took office.
