3 June 2025 | Other

Bank of Japan governor ready to raise interest rates if GDP and inflation growth resume

Bank of Japan governor ready to raise interest rates if GDP and inflation growth resume

Bank of Japan Governor Kazuo Ueda said Tuesday that the country's central bank will raise interest rates if there are clear signs of a recovery in economic growth and price growth after a period of stagnation.

Ueda also announced the central bank's intention to continue reducing bond purchases even after the existing plan expires. The official emphasized the determination to stick to the course of slowly but steadily abandoning ultra-loose policy.

Ueda said the damage from higher US tariffs to Japan's economy would come mainly from lower exports, which could worsen corporate profits and consumer sentiment. A certain slowdown in household income growth is also likely to occur. Nevertheless, the central bank expects economic and wage growth to resume amid still moderately rising consumption.

Last year, the Bank of Japan stopped large-scale economic incentives and raised rates to 0.5% in January, expecting to soon reach the inflation target of 2%. According to a Reuters poll conducted May 7–13, most economists expect the Japan's regulator to keep rates unchanged until September.

Company MarketCheese
Period: 13.09.2026 Expectation: 150 pips
Selling ETHUSD down to $1,750
Today at 10:45 AM 24
Gold buy
Period: 30.09.2026 Expectation: 46000 pips
Going long on gold amid slowdown in US inflation
Today at 10:33 AM 30
Period: 31.10.2026 Expectation: 1100 pips
Invest in EURUSD up to 1.16400
Today at 10:33 AM 19
Period: 13.09.2026 Expectation: 250 pips
Buying S&P 500 with 8,000 target
Today at 08:35 AM 47
Period: 26.08.2026 Expectation: 1850 pips
EURUSD sell-off targets 1.13500
Yesterday at 11:12 AM 39
Period: 31.08.2026 Expectation: 800 pips
Selling EURUSD on high US inflation readings
Yesterday at 09:37 AM 30
Go to forecasts