Key Points

• Kazuo Ueda, the Governor of the Bank of Japan (BOJ), emphasizes the necessity for a supportive monetary policy to promote economic expansion.
• His slightly dovish stance may alleviate market concerns regarding yen-related risks.

The Bank of Japan (BOJ) Governor Kazuo Ueda has indicated the importance of maintaining a supportive monetary approach to facilitate economic development and ensure that inflation trends toward the 2% target.

Ueda addressed the Parliament, noting that the recent rise in the consumer price index exceeding the 2% target is attributed to cost-push factors such as high food and fuel prices, which are expected to decrease over time.

The remarks come shortly after the BOJ raised the benchmark borrowing cost to 0.5%, the highest level in over 16 years, potentially easing fears of a yen-driven market downturn, including in the cryptocurrency sector.

Ueda reiterated that rate hikes would persist if economic conditions align with expectations. ForexLive reports that traders anticipate the next BOJ rate hike in July.