Ueda says BOJ will proceed cautiously with inflation targeting frameworks

By Thomson Reuters May 26, 2024 | 7:26 PM

TOKYO (Reuters) – The Bank of Japan (BOJ) will proceed cautiously with inflation-targeting frameworks, Governor Kazuo Ueda said on Monday in a speech to a BOJ-hosted seminar on central banking.

Ueda said estimating the neutral interest rate accurately is particularly challenging in Japan, given the prolonged period of near-zero short-term interest rates over the past three decades.

“The absence of significant interest rate movements poses a considerable obstacle in assessing the economy’s response to changes in interest rates,” he said.

(Reporting by Makiko Yamazaki; Editing by Muralikumar Anantharaman)