MNI BRIEF: BOJ's Ueda Sees Real Short-Term Rate Below -2.0%

Bank of Japan Governor Kazuo Ueda said on Wednesday that the real short-term interest rate is below -2.0%, slightly lower than the latest BOJ estimate, and the bank will raise the policy rate to adjust the degree of accommodative financial conditions.

Ueda told lawmakers that the BOJ is always paying attention to the risk that the pace of underlying CPI inflation will accelerate above forecasts, noting the Bank had weakened the degree of easy policy since March 2024 when it scrapped the negative interest rate policy.

Japan is experiencing inflation now, judging from the rising consumer price index, he added.

Ueda said the Bank's 2% target is not a rigid one and is '"aimed at achieving around 2% with a certain range.”