BOJ Indicates Further Interest Rate Increases as Japan Moves Through Post-Deflation Economic Rebound

Bank of Japan Signals Ongoing Rate Increases

In a significant departure from its previous long-term policy of maintaining extremely low interest rates, Bank of Japan Governor Kazuo Ueda announced on Monday that the central bank is prepared to implement further rate hikes, provided that current economic and inflation trends persist. This move highlights the BOJ’s intention to steadily unwind its extensive stimulus measures as Japan shifts away from deflation and moves toward a more conventional monetary policy approach.

Addressing representatives of the nation’s banking industry, Ueda noted that Japan’s economy is expected to continue its moderate recovery into 2025, even as the central bank adapts its policy stance.