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Ueda Speech: BoJ Governor discusses policy outlook after the expected interest rate hold
Bank of Japan (BoJ) Governor Kazuo Ueda is addressing the press conference, explaining the reason behind leaving the key interest rate unchanged at 1.00% in the July policy meeting.
BoJ press conference key highlights
Japan’s economy expected to keep growing moderately.
Projected real GDP growth more or less unchanged from April’s projetion in outlook report.
Year-on-year rate of increase in CPI likely to accelerate to level ‘clearly above’ 2% from second half of FY 2026.
CPI rate of increase expected to decline toward around 2% in second half of projection period.
Necessary to pay close attention to Middle East situation impact on financial, fx markets and Japan’s economy, prices.
There is risk that underlying CPI will deviate upward to level above 2% price stability target.
BoJ expected to keep raising rates, adjusting degree of easing in response to economy, prices and financial conditions.
Collecting information on how kumamoto earthquake affects economy, prices.
Board member takata, tamura proposed additional descriptions on prices in outlook report, their proposal rejected.
BoJ will consider timing and pace of rate adjustment while taking factors like likelihood, risks of achieving economy, price outlook baseline scenario.
Perspective of stabilizing underlying CPI inflation at level around 2% is important.
Will guide policy from standpoint of sustainably, stably achieving price target.
Interest rates have been rising since last rate hike last month.
Financial conditions have been accommodative even after last rate hike.
More important than ever to be mindful of inflation overshooting risks.
Will aim to sustainably, stably achieve inflation target under our responsibility.
No comment on daily market moves.
In general, appropriate monetary policy and market trust in long-term fiscal susitaibility important for stable yields.
It’s not that we can’t make policy until data showing complete stabilization of 2% inflation.
Underlying inflation approaching near 2%, can’t ignore risk of overshooting 2%.
The section below was published on July 31 at 3:00 GMT to cover the Bank of Japan’s monetary policy announcements and the initial market reaction.
