Bank of Japan Governor Kazuo Ueda stated that the central bank will carefully analyze data during its March and April meetings to determine whether to raise interest rates, leaving open the possibility of a near-term hike. In an interview, Ueda indicated that if Japan makes progress toward achieving its economic and price forecasts, the central bank will continue to increase rates. According to the latest projections released in January, the Bank of Japan expects core inflation to reach its 2% target in the latter half of fiscal 2026 through fiscal 2027. Ueda noted that while the forecasts have not changed significantly, the timeline for achieving the central bank’s target could be accelerated if the results of spring wage negotiations between companies and labor unions exceed expectations. Responding to widespread market expectations that the Bank of Japan may raise rates in April, Ueda said, "We will hold policy meetings in March and April and will carefully examine available data to make a decision." It was also reported that Ueda mentioned the Bank of Japan does not necessarily need to wait for the release of the quarterly Tankan survey results on April 1 before deciding on a rate hike, as the central bank conducts multiple other surveys simultaneously.
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