Bank of Japan governor reiterates continued rate hikes if economy and prices perform as expected

Odaily News The central bank will continue to raise interest rates if the economy and prices perform in line with expectations, according to a document submitted by Bank of Japan Governor Kazuo Ueda to a government panel. Ueda submitted documents on Tuesday to explain the Bank of Japan's July policy decision to the government's economic and fiscal policy panel. The panel is chaired by Prime Minister Fumio Kishida. The yen strengthened slightly against the dollar to around 146.20 after news that Ueda maintained his stance on rate hikes. The document showed that Ueda believed that the economic environment remained loose even after the July rate hike as real interest rates remained significantly negative. The document also pointed out that the central bank adjusted the level of easing in July because economic and price trends were in line with the central bank's estimated outlook and there were upside risks to prices. Pacific Investment Management Co.'s Japanese subsidiary expects the Bank of Japan to raise interest rates again as early as January next year. (Jinshi)