BOJ will raise rates if inflation accelerates

The Bank of Japan (BOJ) stated it will continue raising interest rates if underlying inflation approaches its 2% target. This decision aims to manage demand-driven price pressures. Governor Kazuo Ueda emphasized the BOJ's commitment to achieving sustainable 2% inflation, keeping real interest rates negative. The BOJ ended its stimulus program last year and raised rates to 0.5% in January. The BOJ is cautious about the zero lower bound and the impact of potential economic downturns. The central bank is expected to maintain its current interest rate at its upcoming meeting.