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The story
Bank of Japan Governor Kazuo Ueda, speaking at a press conference during a visit to Bangkok, Thailand for the G20 finance ministers and central bank governors meeting, said that with underlying inflation approaching 2%, “we cannot tolerate it rising any further, and anchoring it there is a major policy goal.” He had already signaled a shift after September’s policy meeting, saying “the policy phase has changed” — a sign he’s bracing for another rate hike. On 5ch, the thread split between critics saying the BOJ moved too late and others arguing that rate hikes alone won’t stop the weak yen or rising prices, with opinion divided on how the BOJ should proceed.
He held the press conference in Bangkok, Thailand, which he visited to attend the G20 finance ministers and central bank governors meeting.
Governor Ueda explained that with underlying inflation nearing 2%, “we cannot tolerate (underlying inflation) rising any further, and anchoring it there is a major policy goal.” Ueda had already remarked at the press conference following September’s policy meeting that “the policy phase has changed.”
Source: news.yahoo.co.jp / Read the original article here
What people said
Forget the rulebook — in practice you need sign-off from the Vice Minister of Finance first. Didn't you know that?
Even if the BOJ hikes rates on its own,
will that actually hold down prices?
Someone go explain that to Takaichi.
Rate hikes alone won't fix it, but they're still necessary.
Not a token 0.25% like the market's pricing in — a hike north of 1% would actually make a dent.
Get prices under control already.
The winter fuel shortage is going to make it even worse.
No, that's the "Trump Shock."
When the economy slows, you have to cut prices or nothing sells.
So prices end up falling anyway.
Ueda knows that.
He also knows hiking rates is the fastest way to wreck Japan and its people.
The more they hike, the more Japan declines — he's seriously out to crush the Japanese people.
The "Ueda Shock" already happened — he knows full well that killing off the yen carry trade would bring the yen back up.
If they don't hike rates, long-term rates rise instead, and that pushes up market rates — including mortgages — anyway.
That's a lie too, lol
If the market judges that the short-term policy rate is "too low" (too accommodative) relative to prices and economic momentum, long-term rates jump ahead of it on fears of future inflation and further hikes — and that in turn pushes fixed-rate mortgage rates up even more.
That's false, you've been had way too hard, lol
It's not that prices are high — it's that taxes are high, lol
That's because the yen itself is weak.
Normal inflation happens when demand outpaces supply, but the current inflation is being driven by the weak yen pushing up prices — it's not inflation from rising purchasing power. Even if costs are high, raising sticker prices just kills sales. Companies and individuals alike are struggling with high prices, so I don't see any reason wages would rise. Just my personal take, though.
Well, he's the same guy who once said unconventional easing would cause hyperinflation…
The dollar's strong, yet the US still has some of the highest prices in the world.
The idea that a strong currency means low prices is just a myth.
And Switzerland's policy rate is 0, right~ lol
The dollar's only strong against the yen, that's all.
Just look at major corporations' earnings — it's obvious.
Even if revenue looks higher in yen terms, it's flat in dollar terms.
It just looks like bigger profits because of the weak yen.
Since the government's fiscal spending and tax cuts are slow to materialize,
the pace of rate hikes ends up slowing down too.
Isn't this more like a trial balloon for a plan to hike rates back-to-back?
If there's no major backlash or market chaos, they'll just go ahead with it.
Background and Key Points of This Topic
What the BOJ calls “underlying inflation” is its own in-house gauge of the trend movement in prices once temporary factors are stripped out — it’s distinct from the headline Consumer Price Index (CPI). The 2% price target was introduced back in 2013 under then-Governor Haruhiko Kuroda, and Ueda has repeatedly signaled he’s focused on getting it to stick. In the thread, opinions split over the pace of hikes: some argued a modest 0.25%-style move would just get priced in by markets and have little effect, while others countered that hiking rates at all would chill the economy. Some posts also tied the weak yen to particular political figures, but it’s worth noting that exchange rates are shaped by multiple factors — interest rate differentials, global conditions, and more — so they can’t be boiled down to one simple cause.
※This article is compiled from excerpts and a summary of the 5ch (News Flash+) thread “[Breaking] BOJ Governor Ueda: “We Can’t Tolerate Underlying Inflation Rising Any Further”.”
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