Key facts
- Bank of Japan Deputy Governor Shinichi Uchida warned of inflation risks.
- Uchida stated underlying inflation could deviate from the 2% target.
- The Bank of Japan raised interest rates to 1%.
- This is the highest interest rate level in Japan since 1995.
- Uchida's remarks aimed to stabilize the yen.
- A majority of Bank of Japan watchers expect another rate hike by year-end.
- These expectations follow the recent rate hike.
- The rate hike ended years of negative interest rates.
Bank of Japan Deputy Governor Shinichi Uchida has warned of potential inflation risks and the possibility that underlying inflation could deviate from the central bank's 2% target. These statements were made in the wake of the BOJ's significant decision to raise interest rates to 1%. This move marks the highest interest rate level in Japan since 1995. Uchida's hawkish remarks are also seen as an attempt to stabilize the Japanese yen.