植田和男表示，日本在通胀方面的努力已经看到成效，Kazuhiro Ueda stated that before the next rate hike, it is necessary to carefully examine Trump's policy stance after taking office and the outlook for next year's wage negotiations. Although Ueda's remarks reflect the Bank of Japan's determination to continue raising interest rates, they did not indicate a specific timing. Currently, most Analysts expect the bank to raise rates by 25 basis points in January or March.
Ueda Kazuo delivered a speech, reiterating the attention on next year's 'Shunto' and the impact of Trump.
On Wednesday, Bank of Japan Governor Ueda Kazuo spoke at a business meeting in Tokyo, stating that inflation in Japan next year will be closer to the bank's 2% target, laying the groundwork for further rate hikes.
Ueda Kazuo indicated that Japan's efforts on inflation have shown results, and if the economy continues to improve, the bank will raise interest rates, as maintaining excessive MMF support for a long time could increase inflation risks.
"As labor shortages drive up wages, Consumer spending shows signs of improvement, and after years of active MMF stimulus policies, Japan has made progress towards achieving its long-term inflation goals."
He also warned that careful examination of the consequences surrounding the 'high uncertainty' of the overseas economy is necessary, especially the economic policies after Trump becomes the elected president of the USA, stating that more information about Trump's policy stance is needed before a further rate hike.
Ueda Kazuo also stated that the outlook for this year's spring wage negotiations is key to assessing the path of monetary policy:
"The timing and pace of adjusting the degree of monetary easing will depend on the development of economic activity and prices as well as future financial conditions."
When discussing the outlook for 2025, Ueda Kazuo stated:
"Our prediction is that the virtuous cycle will further intensify, the Japanese economy will be closer to achieving a sustainable and stable 2% inflation, and wages will also rise."
Although Ueda Kazuo's remarks indicate the Bank of Japan's determination to continue raising interest rates, no specific timing was revealed. Currently, most Analysts expect the bank to raise the benchmark interest rate from 0.25% to 0.5% in January or March.
At this month's monetary policy meeting, the Bank of Japan kept its stance unchanged as expected. Ueda Kazuo stated at the press conference held that day that the Japanese economy is experiencing a moderate recovery, prices are expected to gradually rebound, but there remains a high level of uncertainty regarding the economy and inflation. The next monetary policy meeting will be held on January 23-24.
