TREE NEWS update: Bank of Japan Governor Kazuo Ueda said the BOJ will continue raising interest rates and gradually adjust monetary easing as underlying inflation approaches the 2% target, with financial conditions still accommodative. Ueda said maintaining the stability of the 2% inflation goal is becoming increasingly important, adding that no views diverging from the BOJ’s basic assessment were heard during this week’s meeting. The BOJ will keep watching the weak yen, AI development and Middle East tensions for their impact on prices.
BOJ’s Ueda: Will Keep Raising Rates as Inflation Nears 2%
Ueda's explicit commitment to further hikes, framed as gradual adjustment rather than tightening, signals the BOJ is normalizing policy while trying to avoid a sharp repricing of yen assets. That matters most for carry-trade positioning and for crypto and RWA markets that have grown accustomed to abundant yen liquidity. The notable detail is the watchlist itself — the weak yen, AI-driven demand and Middle East tensions — since any of these could complicate the inflation path. Whether the BOJ can keep hiking gradually without unsettling global risk appetite is the open question.
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