BOJ Governor Ueda's comments at news conference

BOJ Governor Ueda's comments at news conference Sept 18 : The Bank of Japan raised interest rates to a 31-year high on Friday and signalled its readiness to keep pushing up borrowing costs, joining other major central banks in fighting persistent inflation pressures driven by soaring oil costs. But the widely expected move failed to prop up the yen, which instead fell as investors focused on a lack of explicitly hawkish guidance and two dovish dissenters who argued for patience in pushing up borrowing costs. Following are excerpts from Governor Kazuo Ueda's comments at his post-meeting news conference, which was conducted in Japanese, as translated by Reuters: NEUTRAL RATE UNCERTAIN "It is hard to pinpoint where the neutral rate is, and therefore the terminal rate. It might be the case that as we adjust policy as appropriate, we will know where those rates sit ex-ante." ON FUTURE RATE HIKES: "As for the pace of future rate hikes, we don't have any pre-set idea in mind such as once every three months. We will determine at each policy meeting how best to ensure underlying inflation stabilises at 2 per cent." ON INFLATION: "Up till now, our short-term policy focus was to push up underlying inflation from levels below 2 per cent. Now, underlying inflation is approaching 2 per cent. If risks of underlying inflation overshooting 2 per cent materialise, that could have a negative impact on Japan's economy. It's important to stabilise underlying inflation at 2 per cent. Our policy phase has changed."