The Bank of Japan's Deputy Governor, Masayoshi Ueda, has indicated the possibility of a rate hike if the weak yen continues to boost inflation. This statement was made during the IMF-World Bank annual meetings in Japan.
Ueda's remarks come amidst growing concerns about the impact of the weakening yen on the Japanese economy. A weaker yen can lead to higher import costs, which in turn can push up prices for consumers.
The Bank of Japan has been grappling with low inflation for years and has implemented various measures to stimulate economic growth. However, the recent depreciation of the yen has raised fears of inflationary pressures.
Ueda's comments suggest that the central bank may consider raising interest rates in order to curb inflation if the yen continues to weaken. This move could help stabilize prices and prevent an overheating of the economy.
Market analysts are closely watching the Bank of Japan's next steps, as any decision to raise interest rates could have significant implications for the Japanese economy and global financial markets.
Overall, Ueda's signal of a possible rate hike reflects the central bank's commitment to maintaining price stability and supporting sustainable economic growth in Japan.
