BOJ Governor Ueda notes low real rates in policy outlook
Governor Ueda says the Bank of Japan must weigh low real interest rates when setting policy. He noted that supply-driven inflation requires a careful approach.
Bank of Japan Governor Kazuo Ueda stated that the central bank must carefully evaluate the current level of low real interest rates in Japan when determining the timing for future interest rate adjustments. Speaking at a press conference following the International Monetary Fund meetings in the United States, Ueda highlighted the complexities of managing inflation driven by external factors.
The governor noted that the nation is currently grappling with rising inflation resulting from a negative supply shock. He explained that this type of inflationary pressure is inherently more difficult to manage through monetary policy compared to price increases driven by robust domestic demand.
