BOJ Governor Ueda Says Need to Maintain Accommodative Monetary Environment to Support Economy
Bank of Japan (BOJ) Governor Kazuo Ueda emphasized the necessity of maintaining an accommodative monetary policy to support economic growth and gradually align inflation with the 2% target. He noted that the recent rise in the consumer price index surpassing the 2% mark was driven by cost-push factors, such as soaring food and fuel prices. Ueda's statements follow the bank's recent decision to increase the benchmark borrowing cost to 0.5%, the highest in over 16 years, which could alleviate concerns about a yen-related risk-off scenario impacting global markets, including cryptocurrencies. The governor indicated that if the economic conditions progress as anticipated, further rate hikes would be expected, with traders predicting the next increase could occur in July.
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