Bank of Japan Governor Kazuo Ueda: Monetary policy has entered a new phase, and we will continue to raise interest rates.

PANews October 16 news, according to Jinshi Data, Bank of Japan Governor Kazuo Ueda said that Japan's underlying inflation is approaching 2%, marking a policy shift, and the central bank's policy has entered a new phase and cannot allow inflation to rise further. Since underlying inflation is approaching 2% and financial conditions remain accommodative, the Bank of Japan will continue to raise interest rates and adjust monetary easing. The central bank will discuss at its upcoming meeting whether to adjust its assessment that "underlying inflation is approaching 2%." Kazuo Ueda said that the Middle East situation, artificial intelligence demand, and exchange rates will affect the timing of interest rate hikes, and the central bank has been monitoring the impact of a weaker yen and the Middle East situation on inflation. He also said that it is difficult to make a clear statement about Japan's neutral interest rate, that the stability of 2% inflation is becoming increasingly important, and that the central bank will focus on consolidating the 2% inflation target. In addition, Kazuo Ueda said that the main takeaway from this week's meetings (including the G20) was exchanging views with other policymakers on the impact of the Middle East conflict and artificial intelligence demand on the global and Japanese economies, and that he did not hear anything at the meetings that deviated from the Bank of Japan's basic views. He exchanged views with Federal Reserve Chairman Warsh but would not disclose the specifics; he has not been in contact with U.S. Treasury Secretary Bessent since their meeting in Asheville.