BOJ’s Ueda Confident of Achieving 2 Pct Inflation

Tokyo, Dec. 25 (Jiji Press)–Bank of Japan Governor Kazuo Ueda expressed confidence on Thursday that the country’s underlying inflation is steadily approaching the central bank’s 2 pct target. “The achievement of the 2 pct price stability target, accompanied by wage increases, is steadily approaching,” Ueda said in a speech in Tokyo. He reiterated that the BOJ will continue raising interest rates in response to improvement in the economy and prices. “Adjusting the degree of monetary accommodation as appropriate will lead to smoothly achieving the price stability target and to long-term growth,” he said. “It is highly likely that the mechanism in which both wages and prices rise moderately will be maintained next year and beyond,” he said. There is a growing likelihood that underlying inflation will be at a level that is generally consistent with the 2 pct target from the second half of fiscal 2026 through fiscal 2027, he said. He also said, “Japan is entering a phase in which it is more necessary than ever, for long-term economic growth to be realized, to invest in people and carry out business fixed investment with an eye to the future.” END [Copyright The Jiji Press, Ltd.]