Key facts
- Bank of Japan Governor Kazuo Ueda indicated that a rate hike is possible at any policy meeting.
- The central bank will consider raising interest rates at its upcoming September 17-18 meeting.
- Ueda stated that the current high yield on 10-year Japanese government bonds reflects global rate trends.
- Board member Hajime Takata urged nimble, data-dependent rate hikes to counter inflation pressures.
- Takata stressed the need to monitor exchange rate volatility.
Bank of Japan Governor Kazuo Ueda announced that the central bank will consider raising interest rates at every policy meeting, including the one scheduled for September 17-18. Ueda made these remarks during a press conference following a meeting of Group of 20 finance ministers and central bank governors. He also commented on the recent rise in the 10-year Japanese government bond yield, stating that it reflects the broader global increase in interest rates. Bank of Japan board member Hajime Takata added that interest rate hikes should be nimble and data-dependent, moving away from a fixed semiannual pace. He emphasized the need for the BOJ to demonstrate its commitment to preventing price deviations and to monitor exchange rate volatility.