BOJ Governor Ueda signals willingness to raise rates as economy improves

From Yahoo Finance: 2025-06-02 21:37:00

Bank of Japan Governor Kazuo Ueda plans to raise interest rates once confident in economic growth. Ueda indicated a continuation of tapering bond purchases and warned of potential hits from U.S. tariffs on exports, wages, and consumer sentiment. The BOJ aims for steady inflation despite high food prices impacting consumption. The central bank is monitoring inflation closely to adjust monetary support as needed, with a Reuters poll suggesting a rate hike by year-end. The BOJ will review its bond-taper plan at the upcoming policy meeting, considering market feedback for future adjustments. Calls for flexibility in tapering beyond April 2026 were discussed in meetings with bond market participants, with suggestions to reduce monthly purchases to balance predictability and need.



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