Bank of Japan Governor Kazuo Ueda expressed confidence on Friday that inflation will stabilize during the second half of 2025, following an expected upward revision in the coming months.
Speaking in Tokyo, Ueda stated the need to adjust interest rates gradually based on economic conditions, describing it as aligning with Japan's "economic temperature."
While addressing the potential impacts of the recent rate hike to 0.5%, Ueda stressed the importance of carefully monitoring markets and economic activity. He noted, "We are not severely behind the curve at the moment," and emphasized the importance of understanding how underlying inflation evolves in the coming months.
