Bank of Japan Governor Ueda Stresses the Need for Continued Policy Easing to Sustain Economic Stability.

BOJ’s Ueda Signals Continued Support for Loose Monetary Policy

Bank of Japan (BOJ) Governor Kazuo Ueda reaffirmed on Friday that the central bank will maintain its accommodative monetary stance to foster economic stability and ensure inflation gradually aligns with its 2% target.

Addressing Parliament, Ueda pointed out that the recent rise in consumer prices beyond the 2% mark has been largely driven by short-term cost pressures, including elevated energy and food prices, which are expected to fade.

His remarks come shortly after the BOJ raised interest rates to 0.5%, marking the highest level in over 16 years. The comments suggest that the central bank is treading carefully, which could help ease fears of a stronger yen triggering broader risk aversion in global markets, including cryptocurrencies.

While maintaining a cautious approach, Ueda reiterated that rate adjustments remain a possibility should economic conditions warrant further tightening. Market analysts, including those at ForexLive, anticipate the next BOJ rate hike could come as early as July.