BOJ’s Ueda signals chance of rate hike if FX moves affect prices, Asahi reports

TOKYO (Reuters) – Bank of Japan Governor Kazuo Ueda said the central bank could “respond with monetary policy” if exchange-rate moves affect the country’s inflation and wages in ways that are hard to ignore, the Asahi newspaper reported on Friday.

When asked whether the BOJ could raise interest rates this year, Ueda said it was “dependent on data” and how much progress Japan makes toward sustainably and stably achieving the central bank’s 2% inflation target, according to Asahi’s interview that was conducted on Wednesday.

(Reporting by Leika Kihara; Editing by Leslie Adler)