Bank of Japan Governor Hints at Unchanged Interest Rate Hike Path

Bank of Japan Governor Kazuo Ueda stated after his first bilateral meeting with Prime Minister Sanae Takaichi that the central bank is continuing to gradually adjust the pace of monetary easing, demonstrating its firm intention to raise interest rates. Ueda told the media after the meeting, "The mechanism of inflation growing in tandem with wages is being restored. Therefore, I explained to the Prime Minister that we are gradually adjusting the extent of monetary easing." This meeting comes as investors are focused on Takaichi's stance on monetary policy and awaiting details of the economic stimulus package to be announced this week. Ueda said, "We discussed foreign exchange issues. The central bank will closely monitor its impact on the economy while working closely with the government." He also emphasized that the Bank of Japan will make appropriate policy decisions based on economic data. (Jinshi)