Bank of Japan Governor: Need to Continue Rate Hikes to Curb Inflation

BlockBeats News, June 3rd - Bank of Japan Governor Haruhiko Kuroda, in his final regular speech before an upcoming highly anticipated policy meeting, stated that the Bank of Japan needs to continue to raise interest rates based on the economic situation and inflationary pressures.

Kuroda said, "For example, if the Bank judges that the likelihood of achieving the baseline scenario will increase, meaning that the tension in the Middle East will gradually ease and the underlying inflation rate will gradually rise to around 2% against a backdrop of moderate economic growth, then I believe the Bank will continue to raise the policy rate at an appropriate pace."

Analysts pointed out that Kuroda's remarks today indicate that there is a high possibility of a rate hike by the Bank of Japan this month, but his statement is not as explicit as it was during the previous two rate hikes. This suggests that Kuroda hopes to maintain a certain level of flexibility in the face of an increasingly complex and uncertain situation in the Middle East, as well as comments on monetary policy by Japanese Prime Minister Kanenori Suga.