Japan Interest Rate

Bank of Japan Governor Kazuo Ueda said Wednesday there was no change to the BoJ’s readiness to keep raising interest rates if the economy and prices move as projected. His remarks followed a meeting with Prime Minister Shigeru Ishiba, the first since February, as part of regular exchanges on the economy and markets. The central bank ended its decade-long stimulus last year and lifted short-term rates to 0.5% in January, convinced Japan was nearing its 2% inflation goal. However, political uncertainty may complicate the outlook, with Ishiba under pressure to step down after the LDP’s defeat in July’s upper house election. The party is expected to decide next week whether to hold a leadership race. On the yen, Ueda said it was “desirable for currency rates to move stably, reflecting fundamentals,” adding the BoJ would monitor forex moves closely while coordinating with the government.