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Japan raises interest rates for first time since 2007
Kazuo Ueda also signalled that the BoJ could raise interest rates higher, if conditions require it.
The BoJ governor says:
“If our price forecast clearly overshoots or, even if our median forecast is unchanged, we see a clear increase in upside risk to the price outlook, that will likely lead to a policy change.”
“The likelihood of inflation stably achieving our target has been heightening, including from January through March … As a result, the likelihood reached a certain threshold that resulted in today’s decision.
If the likelihood heightens further and trend inflation accelerates a bit more, that will lead to a further increase in short-term rates.”
