Bank Of Japan To Maintain Accommodative Monetary Policy

According to CoinDesk, Bank of Japan (BOJ) Governor Kazuo Ueda emphasized on Friday the necessity for the central bank to sustain an accommodative monetary policy. This approach aims to bolster economic growth and ensure that underlying inflation gradually aligns with the 2% target. Ueda addressed the Parliament, highlighting that the recent rise in the consumer price index above the 2% target is primarily driven by cost-push factors, including elevated food and fuel prices. He suggested that these factors are likely to dissipate over time. His remarks follow the bank's decision to raise the benchmark borrowing cost to 0.5% last week, marking the highest level in over 16 years. This move could potentially alleviate concerns of a yen-led risk-off scenario in global markets, including cryptocurrencies, as witnessed in August. Despite the current stance, Governor Ueda indicated that rate hikes would persist if the economic conditions develop as anticipated. Market participants, as noted by ForexLive, are projecting the next BOJ rate hike to occur in July. This ongoing monetary policy strategy reflects the central bank's commitment to navigating economic challenges while striving to achieve its inflation objectives.