Bank of Japan Governor: Our real interest rates are still negative.

Bank of Japan Governor Kazuo Ueda confirmed on Thursday the bank's commitment to maintaining its monetary easing policy, which is aimed at sustainably achieving a 2% inflation target.

Ueda pointed out that although the Bank of Japan raised the short-term interest rate to 0.25% last July, real interest rates remain negative, indicating the continuation of monetary easing.

The governor added that the Bank of Japan may need to adjust its monetary policy if economic activity and consumer price inflation rates improve further, warning that prolonged low interest rates could harm the economy.

Ueda noted that the timing of any shift in monetary policy will depend on domestic and global developments, including U.S. economic policies and wage growth trends in Japan.

He also mentioned that the Bank of Japan is closely monitoring wage increases, especially among small and medium-sized enterprises, to ensure a fair distribution of corporate profits.

Ueda expressed optimism about Japan's progress toward achieving its economic goals, adding that 2024 is expected to be a year of steady progress, and the Bank of Japan anticipates continued growth in 2025.