TOKYO - Bank of Japan Governor Kazuo Ueda stated that underlying inflation is gradually accelerating toward the central bank’s 2% target, emphasizing the need for price increases to be matched by solid wage growth.
Ueda made the remarks ahead of the BoJ’s two-day policy meeting, where rates are expected to remain unchanged at 0.75%. He noted that wages and prices are rising in tandem as companies increasingly pass on higher labor and material costs.
He projected inflation will converge near 2% between late fiscal 2026 and 2027. The central bank remains ready to intervene in the Japanese government bond (JGB) market during exceptional yield spikes, he said, stressing the need for nimble action when long-term rates deviate from market fundamentals.