TechFlow news, on March 5, according to Jinshi Data, Bank of Japan Deputy Governor Shinichi Uchida hinted in a speech that the base interest rate would still be gradually raised, which might dampen speculation about an earlier rate hike.
"If the economic outlook materializes, the Bank of Japan will continue raising policy rates accordingly and adjust the degree of monetary easing," Uchida said Wednesday in a speech addressed to business leaders.
"In this regard, the key point of the outlook is whether the central bank can achieve its 2% price stability target," he added. Uchida noted officials would need to monitor how the economy reacts to each rate increase, as the neutral interest rate—neither restrictive nor stimulative—is difficult to pinpoint precisely. The central bank has already raised rates three times over the past 12 months. These comments suggest the BOJ is unlikely to raise rates at two consecutive meetings, including a hike in March following the January increase.
He indicated that based on a range of estimates, the benchmark interest rate could rise to at least 1% by the end of fiscal year 2026.
