The Bank of Japan will continue to raise its benchmark interest rate if its economic projections are realized, Gov. Kazuo Ueda said.
"Although there are pockets of weakness, the economy is recovering moderately,” Ueda said Wednesday in his semiannual report to parliament. "We believe that growth has continued to exceed the potential growth rate as the positive cycle from income to spending gradually strengthened against the backdrop of accommodative financial conditions and other factors.”
Ueda said authorities expect the underlying consumer price trend to reach the 2% target in the second half of its projection period ending in March 2027. If that proves true, the bank will continue to unwind its easy settings with rate hikes.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.