BOJ Governor Ueda Signals Rate Hikes Amid Yen Weakness
Governor Kazuo Ueda said Monday that the BOJ will monitor yen moves as they affect prices. He noted that rising import costs could justify future rate hikes.
Kazuo Ueda, Governor of the Bank of Japan, stated on Monday that the central bank is closely monitoring the yen's fluctuations due to their significant impact on the economy and price stability in Japan. His comments suggest that rising import costs stemming from a weakened currency could provide a rationale for increasing interest rates in the coming months. The yen recently fell beyond 160 against the dollar, reaching its lowest level since July 2024, which has prompted warnings of potential intervention from the nation's top currency officials. While addressing Parliament, Ueda clarified the central bank's stance on foreign exchange.
We dont guide monetary policy directly to control foreign exchange rate moves.
