Bank of Japan Governor Signals Continued Rate Hikes, Warns High Oil Prices Could Push Inflation Above 2% Target

According to Bank of Japan Governor Ueda Kazuo on June 24, the central bank will continue raising interest rates based on economic, price, and financial conditions, with inflation expected to reach the 2% target in the second half of the fiscal year and beyond. Ueda noted that the timing and pace of future rate hikes will depend on the likelihood of baseline forecasts materializing and associated risks. He warned that elevated oil prices could potentially push inflation above the 2% target and trigger broader commodity price increases. The central bank will assess the impact of Middle East conflicts while determining the timing and pace of rate adjustments.
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