Deputy Governor of the Bank of Japan suggests: It's unlikely to raise interest rates for two consecutive meetings

The Deputy Governor of the Bank of Japan, Shinichi Uchida, hinted in a speech that the benchmark interest rate will continue to be gradually raised, which may quell speculation about early rate hikes. Uchida said on Wednesday in a speech to business leaders: "If economic prospects are realized, the Bank of Japan will accordingly continue to raise policy rates and adjust the degree of monetary easing. In this regard, the key point of view is that the central bank expects to achieve a 2% price stability target." Uchida stated that officials will have to monitor economic responses to each rate hike; The central bank has already raised rates three times in the past 12 months because it is difficult accurately determine where non-restrictive and non-stimulative neutral interest rates lie. This comment suggests that it's unlikely for consecutive meetings at the central bank would result in rate hikes including after raising rates in January then again in March. He implied that according to a series of estimates by fiscal year end 2026, benchmark interest rates could rise at least up to 1%.