Attention on Inflation Risk Needed More Than Ever: BOJ Ueda

Tokyo, July 31 (Jiji Press)--Bank of Japan Governor Kazuo Ueda said Friday that it is "more necessary than ever" to pay attention to the risk of higher inflation.

He therefore indicated the BOJ's stance to keep a close watch on whether prices in the nation will rise excessively and have adverse impacts on the economy.

Underlying inflation is expected to remain consistent with the bank's 2 pct price stability target from the second half of fiscal 2026 through the next fiscal year, he told a press conference after the central bank decided to keep its monetary policy unchanged.

But the top Japanese central banker added that there is a risk of inflation rising above the target, emphasizing that the BOJ will thoroughly discuss such risks at its next and later policy-setting meetings.

If the central bank fails to stabilize prices and is forced to raise the policy rate sharply as a result, that would negatively impact the promotion of healthy growth investment, Ueda also said.

[Copyright The Jiji Press, Ltd.]