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BOJ’s Ueda Signals Further Rate Hikes as Wage–Price Cycle Firms

The governor says gradual tightening supports durable expansion.

Overview

  • Ueda said the central bank stands ready to raise rates again if growth and inflation evolve in line with the BOJ’s projections.
  • He described a virtuous wage–price cycle as increasingly sustainable, citing tight labor supply, demographics and shifting corporate pay practices.
  • The BOJ raised its policy rate to 0.75% in December from 0.5%, a 30-year high viewed as a step toward sustained normalization.
  • Finance Minister Satsuki Katayama called the shift toward a growth-led economy a critical stage, echoing the central bank’s message.
  • Markets focused on the Jan. 22–23 outlook report as 10-year JGB yields touched 2.125%, a 27-year high, and the dollar traded near ¥157.