Bank of Japan Governor "Considering Ending Negative Interest Rates if Inflation Continues"

Kazuo Ueda, Governor of the Bank of Japan, conveyed that it is not yet time to lift the negative interest rate policy.

Kazuo Ueda, Governor of the Bank of Japan / Photo by Yonhap News

The Yomiuri Shimbun reported on the 9th that Governor Ueda said that once there is confidence in sustained inflation accompanied by wage increases, lifting the negative interest rate, a key part of the large-scale monetary easing policy, could become one of several options.

According to the report, in an exclusive interview with the Yomiuri Shimbun on the 6th, Governor Ueda said regarding the timing of lifting the negative interest rate policy, which operates short-term interest rates at -0.1%, "It is currently not a stage where a decision can be made."

He added, "While the possibility of having sufficient information and data by the end of the year is not zero, there is still some distance to achieving the inflation target," and "We will persistently continue the monetary easing policy."

At the Monetary Policy Meeting in July, the Bank of Japan maintained the short-term interest rate at -0.1% and effectively raised the upper limit for the 10-year government bond yield, which it purchases unlimitedly, from the previous 0.5% to about 1.0%.