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bank of japan governor kazuo ueda reiterated in a document that the central bank will continue to raise interest rates if economic and price data meet expectations.

according to the latest report from bloomberg, kazuo ueda submitted documents on tuesday to explain the bank of japan's july policy decision to the government's economic and fiscal policy panel, which is chaired by prime minister fumio kishida.

after the news that kazuo ueda maintained his stance on raising interest rates, the yen rose against the us dollar in the short term and is now trading at around 146.13 yen.

ueda said economic conditions remained loose even after the july rate hike as real interest rates remained significantly negative, the document showed.

at the end of july, the bank of japan announced an interest rate hike and a reduction in its balance sheet, raising interest rates by 15 basis points, exceeding expectations, and reducing bond purchases by 400 billion yen per quarter. according to the latest documents, the central bank decided to raise interest rates in july because the economic and price trends were in line with the central bank's expectations and there was an upward risk to prices.

after this unexpectedly hawkish stance, most market participants expect the bank of japan to still have room to raise interest rates this year.

jpmorgan believes that the october inflation report is crucial because many service prices will be revised that month. if service prices do rise as expected, it may prompt the bank of japan to further tighten monetary policy in december.

at a parliamentary hearing in mid-last month, kazuo ueda hinted that the central bank does not intend to raise interest rates hastily, but will pay close attention to the impact of unstable financial markets on the inflation outlook. however, if economic certainty increases, the bank of japan's stance of adjusting its monetary easing policy will not change.

affected by the depreciation of the yen, tokyo's cpi accelerated in august, increasing by 2.6% year-on-year, significantly higher than the previous value of 2.2%. the core cpi (excluding fresh food and energy) rose by 1.6% year-on-year, exceeding the expected 1.4% and the previous value of 1.5%. jpmorgan chase expects that commodity prices will continue to be the main inflation driver in the short term, and wage pressure may further push up service prices.