BOJ chief vows to debate pros and cons of rate hike

TOKYO - Bank of Japan Governor Kazuo Ueda said on Wednesday the central bank must discuss the pros and cons of raising interest rates if inflationary risks outweigh downside risks to the economy.

"Japan is currently in a situation in which the secondary spillover effects of inflation stemming from higher crude oil prices are more likely to lead to an overshoot of underlying inflation," Ueda said in a speech.

"We believe it's necessary to make decisions on future policy based on this premise."

The speech has been closely watched by markets for clues on whether the BOJ would raise interest rates at its policy meeting on June 15 and 16.

(Reporting by Leika Kihara; Editing by Clarence Fernandez)

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This story was originally published June 3, 2026 at 2:05 AM.