BOJ Signals Gradual Monetary Policy Shift, Rules Out Rapid Rate Hikes

Deputy Governor Shinichi Uchida emphasizes a cautious approach to ending negative interest rates and scaling back stimulus, aiming for stability.

BOJ Deputy Governor Shinichi Uchida indicates the central bank will end negative interest rates and scale back monetary support, but not through rapid rate hikes.
The move to end negative interest rates is seen as a 0.1 percentage point hike in short-term rates, signaling a cautious shift in policy.
Uchida highlights the importance of ensuring financial market stability and avoiding abrupt changes in long-term interest rates.
The decision to scale back stimulus comes as service-sector prices rise and companies pass on increased labor costs, aiming for a 2 percent inflation target.
Markets react positively to Uchida's speech, with the yen and Japan's 10-year government bond yield falling, and the Nikkei stock average rising.