BOJ governor Ueda says to expect to keep raising interest rates in response to economic, financial conditions

BOJ Governor Ueda reiterated that the Bank of Japan expects to continue raising interest rates as economic and financial conditions evolve, reinforcing a cautious but hawkish policy stance after today’s decision. He said Japan’s economy is likely to keep growing moderately and warned that underlying inflation could overshoot the 2% target, while emphasizing that policy adjustments will depend on data, FX developments, and broader risks including the Middle East. The remarks did not provide new market-moving guidance, but they confirm that rate normalization remains on track. Markets currently price a near-term pause, with roughly 77% odds of no change at the September meeting, while October is seen as a more likely timing for another hike. For the yen and Japanese markets, the message supports an expectation of gradual tightening rather than an abrupt shift.