The Bank of Japan will continue to raise its policy rate from the current level of around 0.25 percent if the economy and prices move in line with expectations, Governor Kazuo Ueda said Monday.
His remarks came amid speculation that the central bank may hike as early as December, while he said the BOJ will make policy decisions at each meeting based on its latest assessment and outlook for economic and price activities.
“I think that gradually adjusting the degree of accommodation in line with the improvement in economic activity and prices will support long-term economic growth and contribute to achieving the price stability target in a sustainable and stable manner,” he said in a meeting with business leaders in the central Japan city of Nagoya.
On the timing of the next rate hike, Ueda said the bank also needs to carefully monitor the U.S. and other overseas economies.
The BOJ ended its negative rate policy in March with the first rate hike in 17 years, followed by another increase in July. It kept its policy rate unchanged at September and October meetings.
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