Japan Long-Term Rates Rising Rapidly: BOJ Ueda

Tokyo, Jan. 23 (Jiji Press)–Japan’s long-term interest rates are rising at a “significantly rapid” pace, Bank of Japan Governor Kazuo Ueda said Friday. At a press conference following the BOJ’s policy-setting meeting that ended earlier in the day, Ueda said the central bank may conduct market operations “flexibly” to curb further rises. The yield on the most recent issue of 10-year Japanese government bonds, regarded as the country’s benchmark long-term interest rate, has risen sharply in recent days, hitting a 27-year high of 2.38 pct on Tuesday. This prompted U.S. Treasury Secretary Scott Bessent to urge Japan to address bond market volatility. Ueda said that he will assess the effects of the BOJ’s previous rate hike last month in considering when to raise the policy rate next, adding that he wants to gather information as swiftly as possible. In its December 2025 meeting, the central bank decided to hike its target for the unsecured overnight call rate, a key interbank rate, to around 0.75 pct, a 30-year high. With both ruling and opposition parties advocating lower consumption tax in the Feb. 8 general election, Ueda said that it is extremely important for the government to secure market confidence in fiscal health over the medium to long term. Ueda also said he did not join the heads of major central banks around the world in releasing a statement supporting U.S. Federal Reserve Chairman Jerome Powell because it was related to U.S. internal affairs. The statement was issued after the U.S. Justice Department launched an investigation into Powell. The BOJ decided to keep its policy rate unchanged at 0.75 pct at the latest policy meeting. END [Copyright The Jiji Press, Ltd.]