BOJ's Ueda Reiterates Possibility of Rate Hike if Inflation Rises as Expected

By Megumi Fujikawa

TOKYO--Bank of Japan Gov. Kazuo Ueda reiterated Tuesday that the bank would raise interest rates further if inflation grows as the central bank expects.

"If underlying inflation rises toward 2% in line with our projections, we will adjust a degree of monetary easing. In that case, we will likely raise short-term interest rates," Ueda told a parliamentary committee.

The central bank currently expects to achieve its inflation goal toward the year ending in March 2026, he said.

Ueda also said the bank would provide liquidity if geopolitical risks cause disruptions in financial markets.

Write to Megumi Fujikawa at megumi.fujikawa@wsj.com