BoJ’s Ueda: Appropriate to raise rates if trend inflation heightens in line with our forecast


Bank of Japan Governor Kazuo Ueda said during his scheduled appearance on Tuesday that it is “appropriate to raise rates if trend inflation heightens in line with our forecast.”

Additional comments

Japan's real interest rate remains deeply negative, stimulating economy and working to push up prices.

If trend inflation moves to around 2%, it is desirable to move our policy rate to near levels seen neutral to economy, prices.

We will raise interest rate if economy, prices move in line with forecasts shown in our quarterly outlook report.

Uncertainty surrounding economy, prices are high.

BoJ must conduct monetary policy in timely, appropriate fashion without having a pre-set schedule, taking into account various uncertainties.

We will watch with strong sense of urgency US and overseas economic outlook, still unstable market developments.

One-sided Yen falls have been reversed since August, rise in import prices moderating.

We can afford to spend time scrutinising market moves and overseas developments behind market developments.

It is also clear persistent, accelerating inflation also have negative impact on economy.

Will release findings of comprehensive review by year-end.

Expect elevated corporate profits to lead to increase in capex.

Consumption likely to increase moderately as household income rises.

Developments regarding the US economy remain uncertain including how past Fed rate hikes could affect labor market.

Prices are rising by around 2% for wide range of goods.

Looking closely at service price moves, it is becoming more clear that impact of wage rises is heightening.

Trend inflation likely to gradually heighten toward 2%.

Change in corporate price, wage-setting behaviour likely to become embedded in society, keep inflation on the rise next fiscal year and beyond.

Must scrutinize whether overseas developments could affect japan's corporate profits, behaviour.

Market reaction

USD/JPY is recapturing 144.00 despite the hawkish comments from the BoJ Chief. The pair is up 0.31% on the day, as of writing.

Japanese Yen PRICE Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the weakest against the Australian Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   -0.05% -0.12% 0.26% -0.21% -0.40% -0.16% -0.03%
EUR 0.05%   -0.07% 0.32% -0.20% -0.36% -0.13% 0.01%
GBP 0.12% 0.07%   0.38% -0.10% -0.28% -0.06% 0.10%
JPY -0.26% -0.32% -0.38%   -0.45% -0.67% -0.46% -0.29%
CAD 0.21% 0.20% 0.10% 0.45%   -0.19% 0.04% 0.19%
AUD 0.40% 0.36% 0.28% 0.67% 0.19%   0.24% 0.40%
NZD 0.16% 0.13% 0.06% 0.46% -0.04% -0.24%   0.16%
CHF 0.03% -0.01% -0.10% 0.29% -0.19% -0.40% -0.16%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD climbs to multi-month high above 1.1000 on broad USD weakness

EUR/USD climbs to multi-month high above 1.1000 on broad USD weakness

EUR/USD extends its rally to a fresh six-month high above 1.1000 in the European session on Thursday. The pair benefits from the intense selling pressure surrounding the US Dollar after US President Trump unveiled aggressive tariffs on the "Liberation Day." Markets await mid-tier US data releases.

EUR/USD News
GBP/USD jumps above 1.3100 ahead of US data

GBP/USD jumps above 1.3100 ahead of US data

GBP/USD is extending its upbeat momentum above 1.3100 in European trading on Thursday as the US Dollar slumps to a fresh YTD low. Worries about a tariff-driven US economic slowdown lift Fed rate cut bets and weigh on the Greenback. The focus now remains on the US data for further impetus. 

GBP/USD News
Gold price moves further away from all-time peak; downside potential seems limited

Gold price moves further away from all-time peak; downside potential seems limited

Gold price extends its steady intraday pullback from the all-time peak touched this Thursday, though it manages to hold above the $3,100 mark through the early European session. Bullish traders opt to take some profits off the table and lighten their bets around the commodity amid slightly overbought conditions.

Gold News
SOL is the winner as Solana chain turns into battleground for meme coin launchpad and DEX

SOL is the winner as Solana chain turns into battleground for meme coin launchpad and DEX

Solana (SOL) gains nearly 2% in the last 24 hours and trades at 118.28 at the time of writing on Thursday. A Decentralized Exchange (DEX) and a meme coin launchpad built on the Solana blockchain have waged a war for users and compete for the trade volume on the chain. 

Read more
Trump’s “Liberation Day” tariffs on the way

Trump’s “Liberation Day” tariffs on the way

United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs. 

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025