BOJ Must Ensure Underlying Inflation Doesn't Go Above 2%, Ueda Says
By Peter Landers
BANGKOK--Bank of Japan Gov. Kazuo Ueda continued to strike a hawkish tone at a news conference Friday, saying Japan's underlying inflation rate shouldn't be allowed to exceed 2%.
Ueda, speaking at a news conference in Bangkok after attending the International Monetary Fund and World Bank annual meetings, reiterated that the Japanese central bank is in tightening mode.
He cited the Middle East situation, artificial-intelligence demand and foreign-exchange rates as factors that would affect the timing of the decision, without giving further specifics.
Japan's consumer-price inflation has been running above 2% for several years but the Bank of Japan has yet to determine that underlying inflation has risen to 2%, excluding short-term factors such as the pandemic or the recent wars in the Middle East.
Ueda said underlying inflation was quite close to 2% and reiterated that the BOJ wants to anchor the rate at the central bank's target of 2%. "We cannot allow it to rise above that," he said.
Write to Peter Landers at peter.landers@wsj.com
(END) Dow Jones Newswires
October 16, 2026 08:41 ET (12:41 GMT)
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