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BOJ’s Ueda Says It Will Keep Raising Rates

By Drooid · Oct 16, 2026, 11:41 PM UTC · How we work

Summary

Story summary

BOJ Governor Kazuo Ueda said inflation cannot rise further and the bank will continue raising rates.
He noted inflation is near the 2% price-stability target, making its stabilization a primary policy goal.
Ueda cited Middle East tensions, AI demand growth, and currency swings as upside inflation risks.
Ueda will discuss the 2% inflation status at the Oct 29-30 monetary-policy meeting.

History

Historical Context

In the 1970s U.S. inflation peaked at 14.8 % in March 1980, prompting Fed chair Paul Volcker to raise the federal funds rate to 17.6 % by April 1980 and to 20 % in June 1981, sparking a recession that pushed unemployment above 10 % in 1982 and cut CPI below 3 % by 1983. Echoing the “Volcker shock,” Bank of Japan Governor Kazuo Ueda urges hikes to curb near-2 % inflation and stabilize the yen.

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Story summary

BOJ Governor Kazuo Ueda said inflation cannot rise further and the bank will continue raising rates.
He noted inflation is near the 2% price-stability target, making its stabilization a primary policy goal.
Ueda cited Middle East tensions, AI demand growth, and currency swings as upside inflation risks.
Ueda will discuss the 2% inflation status at the Oct 29-30 monetary-policy meeting.

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