EL7.AI
Central BanksMedium•19 October 2026•
1 min read

BoJ's Ueda Stresses 2% Inflation Anchor Amid AI Demand and Energy Costs

Key Facts

1BoJ Governor Kazuo Ueda stated that anchoring underlying inflation around the 2% target is becoming more important.
2Ueda attributed price pressures to Middle East energy costs and strong global demand linked to artificial intelligence.
3The BoJ's current policy rate stands at 1.25%, with the next decision scheduled for October 30.

Bank of Japan Governor Kazuo Ueda stated that anchoring underlying inflation around the 2% target is becoming more important. Ueda attributed price pressures to Middle East energy costs and strong global demand linked to artificial intelligence, investinglive.com reported. The BoJ's current policy rate stands at 1.25%, with the next interest rate decision scheduled for October 30, 2026.

Ueda highlighted a positive cycle in Japan where rising wages and recovering prices support the central bank's tightening bias. This follows data from October 14, 2026, showing that Machinery Orders grew by 18.6% year-on-year, exceeding the forecasted 15.7% growth.

Market attention now shifts to Japan's Balance of Trade data due on October 20, 2026, followed by the annual Inflation Rate release on October 22, 2026, which will provide further clarity ahead of the upcoming policy meeting.