In his final regular speech ahead of the upcoming policy meeting, BOJ Governor
UEDA said the bank must continue raising rates as warranted by economic and
inflation developments. He said that if the BOJ judges its baseline — easing
Middle East tensions, moderate growth and underlying inflation gradually
returning toward about 2% — becomes more likely, it will raise the policy rate
at an appropriate pace; his wording implies a likely hike this month but was
less explicit than during the prior two moves, signaling a preference for
flexibility amid Middle East uncertainty and public comments on policy by Prime
Minister TAKAICHI.
