Bank of Japan Governor reiterates: Economic environment remains accommodative, will continue to raise interest rates if data meets expectations

Bank of Japan Governor Haruhiko Kuroda reiterated that if economic and price data meet expectations, interest rates will continue to rise. Although there was a rate hike in July, real interest rates remain significantly negative, and the economic environment remains loose. The short-term exchange rate of the Japanese yen against the US dollar rose to 146.13 yen. Kuroda stated that the rate hike and balance sheet reduction decision at the end of July were based on economic data meeting expectations and there is an upside risk. The market expects further rate hikes this year, especially as the inflation report in October will have a significant impact on future policies