{"id":439502,"date":"2026-10-06T13:52:45","date_gmt":"2026-10-06T06:52:45","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/boj-governor-ueda-says-inflation-nearing-2-as-december-rate-hike-stays-firmly-in-play-439502\/"},"modified":"2026-10-06T13:52:45","modified_gmt":"2026-10-06T06:52:45","slug":"boj-governor-ueda-says-inflation-nearing-2-as-december-rate-hike-stays-firmly-in-play","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/boj-governor-ueda-says-inflation-nearing-2-as-december-rate-hike-stays-firmly-in-play-439502\/","title":{"rendered":"BOJ governor Ueda says inflation nearing 2% as December rate hike stays firmly in play"},"content":{"rendered":"<div>\n<p style=\"text-align: justify\" class=\"text-align-justify\">BOJ governor, Kazuo Ueda, is speaking in Tokyo and there doesn&#8217;t seem to be any major surprises in his remarks. The message remains quite clear that the central bank still sees room to raise interest rates further.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">Here are some of the\u00a0key comments from Ueda:<\/p>\n<ul>\n<li>Underlying inflation is approaching 2%<\/li>\n<li style=\"text-align: justify\" class=\"text-align-justify\">Economy, prices are moving in line with our baseline forecasts<\/li>\n<li style=\"text-align: justify\" class=\"text-align-justify\">Even after September rate hike, accommodative financial conditions continue to support economic recovery<\/li>\n<li style=\"text-align: justify\" class=\"text-align-justify\">Will continue to raise policy rate in accordance with economic, price, financial developments<\/li>\n<li style=\"text-align: justify\" class=\"text-align-justify\">The pace and timing of future policy adjustments will be decided based on likelihood of our baseline projections materialising as well as the associated risks<\/li>\n<\/ul>\n<p style=\"text-align: justify\" class=\"text-align-justify\">The one that catches my attention is the first one, with Ueda\u00a0once again saying that underlying inflation is approaching the BOJ&#8217;s 2% mark.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">That fits neatly with the report earlier today that <a href=\"https:\/\/investinglive.com\/central-banks\/boj-may-signal-that-inflation-has-hit-2-target-keeping-december-rate-hike-firmly-in-play\/\" rel=\"follow\">the BOJ may go one step further in its October outlook and signal that underlying inflation has effectively reached the 2% target<\/a>. On its own, that would be more symbolic than an immediate trigger for another rate hike. But taken together with Ueda&#8217;s comments above, it continues to build the case that the BOJ might very well tighten policy again in December.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">Besides that,\u00a0Ueda is still describing financial conditions as being accommodative and that\u00a0tells us the BOJ doesn&#8217;t view the latest rate hike as particularly restrictive for the economy.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">Having said that, it doesn&#8217;t\u00a0necessarily mean another rate hike is coming at the October meeting. Policymakers are still cautious of moving in back-to-back meetings, with the earlier report suggesting that they might not want to move too aggressively just yet.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">December will be a different story though.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">Market pricing is currently showing\u00a0a roughly 64% chance of another rate hike by December and if\u00a0the October outlook formally acknowledges that underlying inflation has reached 2%, then\u00a0the hurdle for another rate hike becomes easier to clear.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">In any case, Ueda&#8217;s comments continue to reinforce the main point that rates are still likely heading higher. The bigger question is how quickly the BOJ wants to get there.<\/p>\n<p style=\"text-align: justify\" class=\"text-align-justify\">\n<p>                            This article was written by Justin Low at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>BOJ governor, Kazuo Ueda, is speaking in Tokyo and there doesn&#8217;t seem to be any major surprises in his remarks. The message remains quite clear that the central bank still sees room&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-439502","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/439502","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=439502"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/439502\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=439502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=439502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=439502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}