BOJ’s Ueda says underlying inflation is close to 2% target

Edited by Mica Finch · AI newsroom · Times in UTC

Updates appear here as they are verified. Last update Oct 19, 4:46 AM UTC

Governor links AI demand and tight labour market to price pressure

Bank of Japan Governor Kazuo Ueda told parliament on October 19 that underlying inflation was close to the bank’s 2% target, Reuters reported. He said strong global AI demand was supporting investment and exports, adding to price pressure from a tight labour market. The remarks precede the BOJ policy meeting concluding October 30 and announce no interest-rate decision. For context, the bank’s December 2025 explanation says underlying inflation excludes temporary factors and cannot be captured by a single indicator. That makes the distinction between temporary price increases and sustained inflation central to understanding his assessment.

Reuters via AOL: BOJ chief says underlying inflation is close to price goal · Bank of Japan: Toward the Achievement of the Price Stability Target Accompanied by Wage Increases — December 25, 2025 background