Japan's New PM Urges Caution on BOJ Rate Hikes

Prime Minister Shigeru Ishiba emphasizes the importance of exiting deflation before further interest rate increases.

Bank of Japan Governor Kazuo Ueda met with Prime Minister Shigeru Ishiba to discuss the country's monetary policy.
Ueda assured the PM that the BOJ will move cautiously in deciding on further rate hikes to support Japan's economy.
Economy Minister Ryosei Akazawa reiterated that Japan's priority is to completely exit deflation, which will take time.
The BOJ raised short-term borrowing costs to 0.25% in July and ended negative rates in March, aiming for durable 2% inflation.
The BOJ's next rate review is scheduled for October 30-31, with another meeting in December, amid expectations of a potential rate hike by year-end.