BOJ to Mull Policy Shift If Sustainable 2% Inflation Becomes Certain, Ueda Says

By Megumi Fujikawa

TOKYO–Bank of Japan Gov. Kazuo Ueda said the bank would mull a shift away from monetary easing once it becomes confident about achieving its inflation target.
“If the virtuous cycle between wages and prices intensifies and the likelihood of achieving the price stability target of 2% in a sustainable and stable manner rises sufficiently, the bank will likely consider changing its monetary policy,” Ueda said in a speech Monday.

“Given the uncertainties surrounding economies and financial markets at home and abroad, the timing of a policy change is yet to be decided,” he added.
Analysts and traders are expecting the BOJ to end negative interest rates in the first half of next year as consumer prices have stayed above the bank’s 2% target.
Write to Megumi Fujikawa at [email protected]