SEOUL, November 19 (AJP) - The Bank of Japan (BOJ) is considering additional interest rate increases to combat inflation risks and ensure sustainable economic growth, as market speculation grows over a potential December rate hike.
"I think that gradually adjusting the degree of accommodation in line with the improvement in economic activity and prices will support long-term economic growth," BOJ Governor Kazuo Ueda said in a speech on Monday to business leaders in Nagoya.
The BOJ, which raised its benchmark rate to about 0.25 percent through two increases this year, remains vigilant about the weakening yen against the dollar following Donald Trump's U.S. presidential election victory, while domestic wages continue to rise amid increasing service prices.
The central bank forecasts inflation rates of 2.5 percent for the fiscal year ending March, with rates expected to settle at 1.9 percent for fiscal 2025 and 2026, below its 2 percent stability target, according to its October economic outlook.
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