The BOJ will continue to pursue policy normalization as long as the economy moves toward stable 2 percent inflation, Ueda told a parliamentary meeting. "There is no change in our basic stance to adjust the degree of monetary easing," he said.
The remark came as some market players assumed that the recent market ructions, marked by the benchmark Nikkei stock index's biggest plunge on record earlier this month, would discourage the BOJ from further normalization.
When asked about the turmoil in the stock market, Ueda cited concerns over a potential U.S. recession as a key catalyst, adding that "overdone" worries pertaining to the U.S. economy have since eased.
Regarding the possibility of additional interest rate hikes, Ueda said the central bank will decide after cautiously examining the impact of its latest rate hike in July on the economy and prices.
At the two-day policy meeting through July 31, the BOJ decided to raise its short-term interest rate to around 0.25 percent from the previous range of zero to 0.1 percent. In a press conference soon after the decision, Ueda expressed eagerness to hike the target again by the end of the year, saying, "We will raise interest rates further if the economy and prices move in line with our projections."
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