Bank of Japan Gov. Kazuo Ueda signaled that further interest hikes are likely coming next year, by projecting rising confidence that the central bank is closer to attaining its sustainable price target.
¡°The achievement of the 2% price stability target, accompanied by wage increases, is steadily approaching,¡± Ueda said Thursday in a speech at a conference hosted by business lobby Keidanren. ¡°Amid tightening labor market conditions, business behavior has shifted significantly on setting wages and prices in recent years.¡±
Ueda¡¯s remarks, likely his last in public this year, underscore investor expectations that the bank isn¡¯t done with hikes even after it raised borrowing costs to the highest level since 1995 last Friday. While traders look for clues for when the BOJ might hike next, Ueda gave a slightly more hawkish tone compared with his post-policy decision press conference last week.
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