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Ueda Says BOJ Pursues ‘Smooth Landing’ After First Meeting With PM Takaichi

He reports no policy requests from the premier, easing concern about political pressure on the timing of rate hikes.

Overview

  • Ueda told reporters the BOJ is gradually adjusting support to guide inflation toward 2% and ensure sustainable growth.
  • The governor said Takaichi appeared to acknowledge his explanation, and he offered no new hints on the timing of the next hike.
  • Minutes from a Nov. 12 economic council meeting showed Ueda warned that keeping policy too loose for too long carries risks.
  • The yen has fallen to a nine-month low, drawing stronger caution from the finance minister, and Ueda said he and Takaichi discussed currency moves and favored stable, fundamentals-based exchange rates.
  • Many investors expect a move to 0.75% as soon as December or January, though Takaichi’s adviser urged caution after a Q3 contraction and analysts warn that delaying hikes could deepen yen weakness and lift import costs.