Gold Prices Rise as Weak US Retail Sales Cut Fed Rate Hike Bets 
Asian Currencies Edge Higher as Soft US Inflation Weighs on Dollar 
Japan Economy Minister Downplays Inflation Risks Despite BOJ Warning 
S&P 500 Hits Record High as Soft Inflation Data Eases Fed Rate Hike Fears 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
UK Economy Posts Surprise June Growth as World Cup and Hot Weather Lift Activity 
Chile Central Bank Holds Interest Rate at 4.5% as Inflation and Global Risks Persist 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook 
Asian Stocks Rally as Cooling US Inflation Boosts Fed Rate Outlook 
Canada-US Trade Talks Gain Momentum Ahead of Aug. 19 Tariff Deadline 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
Add as a preferred source on Google
Bank of Japan Governor Kazuo Ueda reaffirmed on Tuesday that underlying inflation in Japan is steadily moving toward the central bank's 2% target, emphasizing that sustainable price growth must be supported by consistent wage increases. His comments came just ahead of the BOJ's two-day policy meeting concluding Thursday, where policymakers are broadly anticipated to hold the benchmark interest rate steady at 0.75%.
Speaking before parliament, Ueda noted that wages and prices are rising in a measured, coordinated manner as Japanese businesses become increasingly willing to pass higher labor and raw material costs on to consumers. He projected that underlying inflation is expected to converge around the 2% threshold sometime between the latter half of fiscal 2026 and 2027, a timeline that signals cautious but growing confidence in Japan's economic recovery.
"We will guide monetary policy appropriately so that Japan sustainably and stably achieves 2% inflation accompanied by wage gains," Ueda stated, reinforcing the central bank's commitment to a balanced and data-driven approach to monetary tightening.
Beyond inflation, Ueda addressed the Japanese government bond market, clarifying that long-term interest rates are primarily determined by market forces and naturally fluctuate based on economic conditions, price trends, and fiscal and monetary policy outlooks. However, he stressed that the BOJ stands ready to intervene swiftly should bond yields spike abruptly in ways inconsistent with normal market behavior.
The governor's remarks highlight the BOJ's delicate balancing act — nurturing inflation toward its target without prematurely tightening financial conditions. As Japan continues its gradual shift away from decades of ultra-loose monetary policy, market participants and investors are closely watching each policy signal for clues about the pace and direction of future interest rate adjustments and broader economic normalization in the world's fourth-largest economy.
