Bank of Japan (BoJ) Governor Kazuo Ueda indicated that the central bank is nearing the possibility of an interest rate hike, contingent on economic data aligning with forecasts. In a statement on Saturday, Ueda emphasized that wage trends, particularly the outcome of Japan’s fiscal 2025 spring wage negotiations (shunto), will be a key factor in the decision.
Ueda noted that while the BoJ is prepared to adjust its monetary policy, particularly in terms of easing, it will do so when confident that the economy is on track, with underlying inflation moving towards the 2% target. He also pointed to uncertainty surrounding U.S. economic policy as an important factor to monitor.
Following Ueda’s remarks, the USD/JPY pair was trading at around 150.26, reflecting a 0.42% gain for the day.
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