Bank of Japan Governor Signals Further Rate Increases Ahead of Policy Meeting

The Bank of Japan needs to keep raising interest rates in response to developments in the economy and inflation, the governor said in a speech Wednesday. The remarks were delivered at a forum in Tokyo and came one day before a closely watched policy meeting.

The governor stated that if the economy evolves in line with the bank's forecasts, which include easing Mideast tensions and inflation reaching its 2 percent target, the bank will continue to raise the policy interest rate at an appropriate pace.

The governor added that upside risks to prices appear greater overall and are likely to emerge sooner, based on data and anecdotal information available so far. Officials have scheduled the next policy decision for later this month.