Bank of Japan (BoJ) Governor Kazuo Ueda mentioned in his speech to the Committee on Financial Affairs on Tuesday that he anticipates interest rates to stay low even after the policy shift in March, which ended eight years of negative interest rates.
"Even after the March policy shift, expect interest rates to stay low and real interest rates to remain at deeply negative territory," he further stated.
He emphasized that trend inflation has not yet reached the targeted 2%, "which is why it is important to maintain accommodative monetary conditions for the time being." Ueda also clarified that he does not have any predetermined plans regarding the timing or approach for the BoJ's next adjustment of short-term interest rates.
