BoJ Governor Kazuo Ueda reaffirmed the tightening bias today, adding wages and prices are “highly likely to rise together moderately.” In a speech he said adjusting the degree of monetary support would help place the economy on a path toward sustained growth.
Ueda added that the central bank will continue to raise interest rates if economic activity and inflation evolve in line with its forecasts. Also, Japan’s economy maintained a moderate recovery last year despite pressure on corporate profits from higher U.S. tariffs.
Speaking at the same banking event, Finance Minister Satsuki Katayama said Japan is at a critical stage of shifting toward a growth-driven economy after decades of deflation.
