Bank of Japan signals accelerating inflation

According to Bloomberg, Bank of Japan (BOJ) officials discussed the country’s accelerating inflation last week. The regulator’s representatives believe that vigilance remains necessary due to high uncertainty surrounding the US administration’s trade policies.

One BOJ board member stated that maintaining the current monetary policy strategy remains advisable, while also highlighting the need to account for risks to economic activity due to Middle East tensions.

Data released last Friday showed Japan’s national price index hitting a fresh two-year high. Governor Kazuo Ueda’s board kept the benchmark rate unchanged at 0.5% during its latest meeting, while simultaneously unveiling plans to gradually slow bond purchases starting next fiscal year.

During a press conference, the BOJ governor stated that policymakers must first assess the impact of US trade tariffs on Japan’s economic indicators before considering any monetary policy tightening.