- Won't comment on specifics on interest rates
- Long-term rates are rising rather rapidly recently
- Will increase JGB purchases if long-term rates make abrupt moves
- Will pay close attention to market moves
- Real interest rates are significantly low
- Will adjust degree of monetary easing if economic, prices trends move in line with forecasts
- Gathering information on companies' stance on wages for next year
- Labour market is tightening, increasing upward pressure on wages and prices
- By adjusting degree of monetary policy, we can ensure stability of financial markets and realise price stability
There's really nothing new here from Ueda. The market already knows the BoJ is going to hike at the upcoming meeting with the probabilities now standing around 76%.
This makes it a done deal because they certainly won't want to deliver a dovish surprise by keeping rates steady. In 2026, the market is fully pricing in another 25 bps hike.
