Bank of Japan Governor Kazuo Ueda: Inflation target nearing, will seek further interest rate hikes

PANews reported on December 25th that Bank of Japan Governor Kazuo Ueda stated on Thursday that the central bank is gradually approaching its 2% inflation target and reiterated its stance of seeking further interest rate hikes. In his speech, he stated, "Against the backdrop of a tightening labor market, corporate wage and pricing behavior has changed significantly in recent years, and the 2% price stability target, accompanying wage growth, is steadily approaching." He expressed confidence in Japan's wage-price dynamics, noting that "the possibility of the Japanese economy returning to a so-called zero-normal state (i.e., wages and prices remaining almost unchanged) seems to have decreased significantly." Ueda stated in his speech that if economic and price forecasts meet expectations, the central bank will further adjust monetary policy. He added that adjusting monetary policy at an appropriate pace will help the central bank smoothly achieve its inflation target while promoting long-term growth and laying the foundation for businesses to build confidence in their operations.