BOJ governor Ueda: Upward revision to inflation forecast should kick in during mid-2025

• After that, we expect inflation to settle in second half of the year
• Not seeing BOJ is that severely behind the curve right now
• It is necessary to raise rates in accordance with ‘economic temperature’
• Appropriate response will be to gradually ascertain how underlying inflation will rise moving forward
• Will carefully monitor impact of rate hike on markets, economy
• US tariff policies are uncertain, can’t comment on its impact
• Will provide a view on that once details become clearer

He’s not pushing for a quicker pace of tightening policy overall and I reckon that’ll be the key takeaway in all of this. But he’s not come out to say that after the rate hike today, they will move to the sidelines for a while either. Instead, he’s saying they did hike rates today but will look to do so again when the right conditions line up. I’d take that as meaning they will still move roughly every five to six months.

This article was written by Justin Low at www.forexlive.com.