BOJ Chief Warns of Inflation Overshoot Risks

Bank of Japan Governor Kazuo Ueda warned of the risk that underlying inflation could exceed the two percent target. He stressed the importance of anchoring price pressures ahead of the central bank's upcoming policy meeting later this month.

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Bank of Japan Governor Kazuo Ueda speaks at a press conference after a BOJ policy meeting in Tokyo, Japan, September 18, 2026. REUTERS/Kim Kyung-Hoon

Japan's central bank governor flagged inflation overshoot risks on Friday morning, stressing the need to anchor price pressures at 2%. The warning arrives ahead of an upcoming policy meeting that will shape interest rate expectations.

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