BOJ’s Ueda Reaffirms Need for Loose Monetary Policy to Sustain Growth
Bank of Japan (BOJ) Governor Kazuo Ueda emphasized on Friday that the central bank must continue its accommodative monetary stance to support economic expansion and guide inflation toward its 2% target.
Speaking before Parliament, Ueda noted that while inflation has exceeded 2%, it has been largely driven by temporary factors such as rising food and energy costs, which are expected to ease over time. His comments follow last week’s rate hike to 0.5%, the highest level in 16 years, and could help ease concerns over a stronger yen triggering a broader risk-off sentiment in global financial markets, including crypto.
Despite his dovish tone, Ueda reiterated that the BOJ remains open to further rate increases if economic conditions warrant. Forex markets currently anticipate the next hike could take place in July, according to ForexLive.
