Ueda Signals December Rate Hike to 1.5% as BOJ Says Inflation Hit 2%
Updated
Updated · Bloomberg · Nov 2
Ueda Signals December Rate Hike to 1.5% as BOJ Says Inflation Hit 2%
3 articles · Updated · Bloomberg · Nov 2
Summary
Kazuo Ueda used his post-meeting briefing to signal a December increase in Japan’s benchmark rate, hours after the BOJ said underlying inflation had reached its 2% objective.
The central bank left the policy rate unchanged at 1.25% on Friday, matching expectations after its September hike, but Ueda’s remarks marked a clear hawkish turn.
That shift reflects concern about inflation overshooting rather than falling short, with Japan’s core inflation running at 2.1% in September.
A December move to 1.5% would extend the BOJ’s gradual normalization, though uncertainty over the neutral rate—estimated around 1.1% to 2.5%—still clouds how far tightening can go after that.