Key facts
- Bank of Japan Governor Kazuo Ueda will discuss economic and inflation risks at the next policy meeting.
- The central bank will assess the cumulative impact of its five previous rate hikes.
- A rate hike will be considered if inflation risks are deemed greater than economic activity risks.
Bank of Japan Governor Kazuo Ueda stated that the central bank will discuss the economy and inflation risks at its upcoming meeting. He indicated that the board needs to carefully scrutinize the cumulative impact of the five policy rate hikes already implemented.
Ueda suggested that if the risks of inflation proving hotter than expected are judged to outweigh the potential negative impact on the economy, particularly in light of the Middle East conflict, then a thorough discussion on the pros and cons of raising the policy interest rate would be necessary. This assessment comes ahead of the next rate policy meeting.