FX.co ★ BoJ Seeks Steady Inflation Growth Supported by Wage Gains: Governor Ueda

Bank of Japan Governor Kazuo Ueda addressed parliament on Thursday, emphasizing the central bank's commitment to achieving moderate inflation paired with wage growth and economic enhancement. This goal is aligned with Prime Minister Sanae Takaichi's strategy to stimulate economic growth. Despite a decline in demand for food and other non-durable goods, Ueda highlighted that domestic consumption remains robust, bolstered by rising household incomes. A tightening labor market is contributing to increased wages, thereby supporting a sustainable cycle of wage and price growth. "When we examine underlying inflation, removing temporary factors, it is steadily moving towards our 2% target," he stated. This advancement suggests that conditions for a potential future interest rate increase are being met, as the gradual economic recovery leads to rising prices across various goods and services.