Will Japan's policy rate rise again…Bank of Japan governor again hints at "additional increase"

Bank of Japan Governor Kazuo Ueda indicated on the 25th that he intends to further raise the policy rate.

According to Kyodo News and Nikkei, Governor Ueda said in a speech at an event of the Japan business federation Keidanren (Keidanren · Japan Business Federation) that if the economic and inflation outlooks materialize, "we will continue to raise the policy rate and adjust the degree of monetary easing."

He also said "(real interest rates) are at a very low level" and expected wage growth to continue next year.

Earlier, at the Monetary Policy Meeting on the 19th, the Bank of Japan raised the short-term policy rate, the policy rate, from '0.5%' to '0.75%', a 0.25%-point increase. This made Japan's policy rate the highest in 30 years since 1995.

At that time, Governor Ueda also hinted at further rate hikes, saying, "We will continue to raise the policy rate and adjust the degree of monetary easing."

Ahn Hye-won, Hankyung.com reporter anhw@hankyung.com