BOJ Governor Kazuo Ueda has stated that underlying inflation is "quite close" to the central bank's 2% target, emphasizing the importance of maintaining inflation around that level. Ueda also noted that strong global AI demand is contributing to increased domestic capital expenditure and exports, furthering inflationary pressures in Japan. This development highlights the ongoing challenges faced by the country's economy and the need for continued monetary policy adjustments to stabilize inflation.
TOKYO, Oct 19 : Bank of Japan Governor Kazuo Ueda said on Monday underlying inflation is "quite close" to the central bank's 2 per cent target, heightening the importance of anchoring inflation around that level.
Speaking in parliament, Ueda also said "very strong" global AI demand was boosting domestic capital expenditure and exports, adding to inflationary pressure from Japan's moderate economic recovery and tight job market.
BOJ Governor Kazuo Ueda stated that underlying inflation is "quite close" to the central bank's 2% target, citing strong global AI demand as a contributing factor. This development is expected to be closely watched ahead of the central bank's upcoming policy meeting, where it will release fresh quarterly growth and inflation forecasts. Ueda emphasized the importance of anchoring inflation around the target, noting that rising raw material costs and a tight job market are also contributing to price pressure.
The U.S. President's waiver of sanctions on Russia could lead to increased Russian oil exports, potentially increasing supply and causing a decline in oil prices. This move could also lead to increased tensions between the U.S. and Russia, which could have negative consequences for the global economy.
India's Finance Minister, Nirmala Sitharaman, attributes India's equity market underperformance to easy liquidity and ease of exits, despite the country's economic fundamentals being fine. Since January, the key benchmark indexes have fallen nearly 12%, while domestic capital inflows have continued, and foreign investors have sold Indian equities worth over $33 billion this year. Sitharaman emphasized that India is not an AI investment destination and has not received such investments, but she noted that the count…