Inflation Watch: Global risks complicate Japan’s monetary path – BOJ’s Inflation Strategy Still Cautious

Bank of Japan Governor Kazuo Ueda reaffirmed the central bank’s cautious stance on raising interest rates. While Japan’s core consumer inflation has exceeded 2% for three consecutive years, Ueda emphasized that underlying, demand-driven inflation remains below target. The BOJ will only consider further rate hikes once there is stronger evidence that this underlying inflation is approaching or sustaining around 2%. (Source: Reuters)