The Governor of the Bank of Japan (BOJ), Kazuo Ueda, said on Friday that the central bank should maintain an accommodating monetary policy to support economic growth and guarantee that underlying inflation is gradually going to the target of 2% .
Ueda told Parliament that the recent increase in the consumer price index greater than the 2% target had been led by cost factors such as high food and fuel prices that will dissipate probably.
The comments come a week after the bank increased the reference cost of 0.5%, the highest in more than 16 years, and could appease fears of a risk led by the Yen on the global markets , including cryptocurrencies, as observed in August.
The governor, however, argued that the rate increases would continue if the economy evolves as expected. According to Forexlive, traders see the next increase in BOJ rates in July.
