Bank of Japan Governor Kikuo Iwata: Further Rate Hikes Needed to Curb Inflation

BlockBeats News, June 3rd – Bank of Japan Governor Kuroda Haruhiko stated in his final regular speech before an upcoming highly anticipated policy meeting that the Bank of Japan needs to continue raising interest rates based on the economic situation and inflation.

Kuroda Haruhiko said, "For example, if the Bank judges that the likelihood of achieving the baseline scenario will increase, meaning that the tense situation in the Middle East will gradually ease and the underlying inflation rate will gradually rise to around 2% against the backdrop of moderate economic growth, then I believe the Bank will continue to raise the policy rate at an appropriate pace."

Analysis points out that Kuroda Haruhiko's remarks today indicate a higher possibility of the Bank of Japan raising interest rates this month, but his statement is not as explicit as it was during the two previous rate hikes. This suggests that Kuroda Haruhiko hopes to maintain a certain level of flexibility amidst the increasingly complex and uncertain situation in the Middle East, as well as the stance of Japanese Prime Minister Kanemasa Sanae on monetary policy.