MNI BRIEF: Ueda Sees Outlook Improving, No Rate Hike Signal

Bank of Japan Governor Kazuo Ueda said Thursday the likelihood of the Bank’s economic and price outlook being realised is gradually increasing, though he stopped short of signalling when a rate hike might occur.

Asked about the timing of a policy rate increase, following the board's decision Thursday to hold at 0.5%, Ueda said he had “no prediction” and wanted to see more data before the December meeting.

Ueda noted the Bank would watch whether corporate price-setting behaviour weakens as the economy becomes more affected by trade policy.

“I don’t think the possibility doesn’t increase the bank falls into the behind the curve,” Ueda said.

On wage developments in fiscal 2026, Ueda said there was insufficient material to make a prediction, but added it could be “plus or minus alpha.”

He said it would take more time to assess the impact of trade policy on the U.S. economy and private consumption. While the U.S. economy has proven resilient amid a stronger-than-expected AI boom, Ueda cautioned that trade policy could still weigh on growth.