MNI BRIEF: BOJ Ueda Downplays Negative Rate Removal In 2023

Bank of Japan Governor Kazuo Ueda earlier Monday downplayed a chance of removing the negative interest rate policy within this calendar year, although he said the chance isn’t zero.

“The possibility isn’t zero and the chance will be possible at all meetings. But looking ahead, only about two months are left this year,” Ueda told reporters, indicating the BOJ will unlikely phase out from its easy policy this yearand the BOJ view is unlikely to change dramatically at the December meeting.

Ueda also said that the BOJ could assess the timing of achieving the price target view before the release of price view in fiscal 2026 to be incorporated into the Outlook Report in April. When asked about the timing of YCC removal and negative interest rate policy, Ueda said that he cannot say when, but added that the BOJ could act before the release of price forecasts for fiscal 2026.