Japan’s Nikkei rises amid softer stance from Bank of Japan chief
The session began with a hawkish tone from Ueda during parliamentary testimony, where he hinted at possible future interest rate hikes if inflation continues to rise.
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The Bank of Japan (BOJ) is adjusting its monetary policy in response to these fiscal pressures. The central bank has embarked on an interest rate hike cycle and plans to reduce its purchasing of government bonds, part of its extensive monetary stimulus program initiated over the past decade. This shift is aimed at achieving a 2 percent inflation target but is expected to lead to higher borrowing costs for households and businesses, as well as increased debt-servicing expenses for the government
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