Bank of Japan Governor Ueda attended a meeting of the House of Councilors Budget Committee and reiterated his recognition that the 2% price stability target, which is a prerequisite for changes in monetary policy such as lifting negative interest rates, is ``gradually becoming more likely to be achieved.'' Ta.
In financial markets, there is speculation that the Bank of Japan may decide to lift negative interest rates at its monetary policy meeting, which is scheduled to begin on the 18th of this month.
Under these circumstances, Governor Ueda spoke at the House of Councilors Budget Committee on the 7th, regarding the price stability target of 2%, saying, ``While the outlook is that the underlying price increase rate will gradually increase toward 2%, there is no certainty that it will be achieved.'' "They are rising little by little," he said, reiterating his understanding of prices that he had previously made clear.
He added, ``If we reach a situation where we can foresee the sustained and stable achievement of the price target, we will consider modifying large-scale easing measures, such as negative interest rate policy and the framework of yield curve control. It is entirely possible to proceed appropriately."
Members of the Bank of Japan's policy committee, which determines monetary policy, have expressed positive ideas about achieving a virtuous cycle of wages and prices, and interest in this month's meeting is increasing.