Bank of Japan Governor Kazuo Ueda supports Japan’s economy and will cautiously decide on interest rate hikes, meeting new Prime Minister Shigeru Ishiba’s request for continued loose monetary policy.
Ueda explained that the BOJ will adjust interest rates based on economic and price developments, but will do so cautiously after scrutinising the situation carefully.
Both Ishiba and newly-appointed economy minister Ryosei Akazawa emphasize the importance of Japan moving out of deflation and urge the BOJ to be cautious in further interest rate hikes.
The BOJ raised short-term borrowing costs to 0.25% in July, and will review rates on Oct. 30-31 with economists expecting another rate hike by year-end.
