MNI BRIEF: BOJ's Ueda Avoids October Rate Hike Signal

Bank of Japan Governor Kazuo Ueda said Friday the central bank will raise its policy interest rate if the outlook for economic activity and prices materialises as expected, while stopping short of signaling an imminent move.

“To determine whether economic activity and prices are improving, the Bank will, for the time being, monitor factors such as the points I mentioned -- namely, developments in the global economy, especially the U.S. economy; the impact of U.S. tariff policies on Japanese firms' profits and wage- and price-setting behavior; and price developments, including food prices,” Ueda told business leaders in Osaka.

The BOJ will carefully weigh both upside and downside risks when judging the likelihood its baseline scenario will be realised, he added, stressing that decisions will be made “as appropriate and without any preconceptions.”

With about a month until the next policy meeting, Ueda gave no indication the BOJ was preparing to raise rates in October. MNI reported this week better than expected September Tankan results raised the chances of a move at the Oct 29-30 meeting. (See MNI POLICY: BOJ's Tankan Raises Hike Odds, Ueda Speech Eyed)