Bank of Japan Governor: ”Interest rate hike approaching”

Regarding a further base rate hike, Bank of Japan Governor Kazuo Ueda said on the 30th, "We are getting closer in the sense that the data is moving on track (as expected)."
In an interview with the Nihon Keizai Shimbun published on the same day, Bank of Japan Governor Kazuo Ueda said, "If we become more confident that the inflation rate will steadily rise toward 2%, we will consider reducing monetary easing at an appropriate time.
"We will adjust the extent of the wage hike," he said. However, Kazuo Ueda, president of the LDP, said he would keep a close eye on the wage hike situation. "We will wait and see what kind of momentum the spring labor offensive next year will have," he said.
Governor Kazuo Ueda also mentioned that future interest rates will be between minus (-) 1% and plus (+) 0.5% (based on real interest rates).
Assuming a 2% rate of increase, the Bank of Japan predicted that the policy interest rate could be 1.2% to 2.5%. Regarding the inauguration of the new Trump administration in the United States, Governor Kazuo Ueda said, "I would like to know how the US economic policy will be implemented.
"There is a big question mark over whether the current monetary policy will be able to continue," he said, adding that he would also review the external situation. Since assuming his position in April last year, Governor Kazuo Ueda has been promoting "monetary normalization," breaking away from the existing "monetary easing" policy.
Prior to this, the Bank of Japan raised the base interest rate for the first time in 17 years at its Monetary Policy Meeting in March, ending its negative interest rate policy. It then raised interest rates to 0-0.1% at its July meeting.
The Bank of Japan raised interest rates to around 0.25% from 2016 to 2020. It then froze interest rates twice in September and October. The market expects the Bank of Japan to raise interest rates to 0.5% next month or as early as January next year.
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