# BOJ Governor Ueda's Policy Stance at News Conference Central bank chief outlines monetary policy direction amid economic shifts. - **Source:** [All News](https://brifing.si/source/08b8064b-247f-4829-ae25-3602b47f58a9) - **Published:** 2026-09-18 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/113fd53f-50ac-4396-b833-10a00c6d4e88 ## Monetary policy outlook Governor Ueda emphasized the Bank of Japan's commitment to maintaining accommodative monetary policies while carefully monitoring economic conditions. The central bank remains cautious about premature tightening given Japan's fragile economic recovery and global uncertainties. Ueda noted particular attention to wage growth trends and inflation expectations in policy considerations. ## Yield curve control stance The BOJ governor reiterated the bank's flexible approach to yield curve control, allowing market forces to play a greater role within certain boundaries. This reflects a gradual normalization process while avoiding abrupt policy shocks. Ueda stressed that any adjustments would be data-dependent and communicated transparently to markets. ## Inflation assessment Ueda characterized recent inflation as primarily cost-push rather than demand-driven, suggesting limited immediate need for aggressive tightening. The governor highlighted differences between Japan's inflation dynamics and those in other major economies. Core inflation measures remain below the BOJ's 2% target on a sustainable basis. ## Currency market impact The governor acknowledged yen volatility but maintained that exchange rates should reflect economic fundamentals. BOJ's policy stance continues to contribute to yen weakness against major currencies. Ueda avoided direct commentary on desirable exchange rate levels, emphasizing market determination of currency values. ## Global policy divergence Ueda addressed the growing policy gap between Japan and other central banks tightening monetary policy. The BOJ remains an outlier in maintaining ultra-low rates while peers hike aggressively. This divergence creates complex dynamics for capital flows and currency markets. ## Financial system stability The governor expressed confidence in Japan's banking sector resilience despite prolonged low-rate environment. BOJ monitoring focuses on potential risks from abrupt global policy shifts. Stress testing indicates adequate buffers in major financial institutions. ## Communication strategy Ueda emphasized forward guidance clarity to prevent market disruptions during policy normalization. The BOJ aims to balance transparency with operational flexibility. Market participants increasingly parse subtle changes in BOJ communication for policy signals. ## Economic growth prospects The governor projected moderate recovery supported by domestic demand revival post-pandemic. BOJ expects gradual improvement in consumption and business investment. However, external demand weakness and global slowdown risks cloud the outlook. ## Sources covering this story - https://www.investing.com/news/economy-news/boj-governor-uedas-comments-at-news-conference-4906744 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._