One year after taking office, Bank of Japan Governor Ueda focuses on how to decide on additional interest rate hikes. Last month, the bank lifted its negative interest rate policy, citing a virtuous cycle in wages and prices.
There are speculations in the financial markets that the next rate hike will take place before the end of the year. However, the Japanese economy is experiencing weakness in personal consumption due to continued negative real wages, a worsening labor shortage, and an increase in import prices due to the depreciation of the yen.