BOJ Governor Highlights Challenges in Meeting Inflation Target

Bank of Japan (BOJ) Governor Kazuo Ueda acknowledged on Wednesday the challenges Japan faces in sustainably achieving its 2% inflation target. Speaking at a panel hosted by the International Monetary Fund, Ueda pointed out that core inflation in Japan is on a slow upward trend. Highlighting the difficulties of determining the right magnitude of future interest rate hikes, Ueda described this task as "very difficult." His remarks come at a time when Japan continues its efforts to boost economic growth amid global economic pressures. The central bank policy meeting held in Tokyo on June 14, 2024, had set the stage for current monetary policies. Governor Ueda's comments underscore the delicate balance the Bank of Japan must maintain while steering the country's monetary policy.