Bank of Japan Governor Kazuo Ueda has increased confidence that the bank is closer to achieving its sustainable inflation target, hinting that interest rates may be raised further next year. “Along with wage growth, the 2% price stabilization target is steadily getting closer to being achieved,” Ueda Kazuo said in a speech at a conference hosted by the business lobbying group Federation of Trade Unions on Thursday. “In recent years, against the backdrop of a tightening labor market, the behavior of enterprises in setting wages and prices has changed significantly.” This may be Kazuo Ueda's last public speech this year, reinforcing investors' expectations that the interest rate hike cycle is not over, even though the Bank of Japan raised borrowing costs to the highest level since 1995 last Friday. Traders are looking for clues as to when interest rates will be raised next, and Kazuo Ueda's tone was slightly more hawkish than last week's press conference after the policy decision.

Bank of Japan Governor Kazuo Ueda has increased confidence that the bank is closer to achieving its sustainable inflation target, hinting that interest rates may be raised further next year. “Along with wage growth, the 2% price stabilization target is steadily getting closer to being achieved,” Ueda Kazuo said in a speech at a conference hosted by the business lobbying group Federation of Trade Unions on Thursday. “In recent years, against the backdrop of a tightening labor market, the behavior of enterprises in setting wages and prices has changed significantly.” This may be Kazuo Ueda's last public speech this year, reinforcing investors' expectations that the interest rate hike cycle is not over, even though the Bank of Japan raised borrowing costs to the highest level since 1995 last Friday. Traders are looking for clues as to when interest rates will be raised next, and Kazuo Ueda's tone was slightly more hawkish than last week's press conference after the policy decision.