🔥The interest rate hike roadmap is emerging! Kazuo Ueda: Future actions will closely monitor the "wage-price" cycle
💥Bank of Japan Governor Kazuo Ueda drew the clearest line for future policy directions at a press conference. He stated that if wage increases continue to transmit to prices, an interest rate hike is indeed possible.
This statement is crucial as it sets clear preconditions for the next interest rate hike. The Bank of Japan's future decisions will heavily rely on the assessment of whether a positive "wage-price" cycle is firmly established.
This means that the market's hot discussions about the "neutral interest rate" and specific timing for rate hikes will not have clear answers in the short term. The central bank's action model will adopt a gradual pace of "observing data before making decisions."
For the global market, this statement actually conveys a relatively mild signal. It indicates that the Bank of Japan will not embark on an aggressive tightening cycle with a predetermined path, thereby reducing policy uncertainty. A more transparent and economically fundamental policy framework helps stabilize market expectations.
