Bank of Japan (BoJ) Governor Kazuo Ueda reiterated on Monday that the institution will take the necessary steps to get inflation in the country to its target of 2%.
Speaking at the BoJ Institute for Monetary and Economic Studies' event, Ueda commented on the difficulties the institution might face in the future, highlighting "determining the neutral interest rate. Estimating it accurately is challenging for any central bank, but it is particularly so in Japan, given the prolonged period of near-zero short-term interest rates over the past three decades."
"Although real interest rates have exhibited some fluctuations, the absence of significant interest rate movements poses a considerable obstacle in assessing the economy's response to changes in interest rates," Ueda warned.
