The central banks of the Group of Seven see the need to assess the impact of previous interest rate increases by Reuters

NIIGATA, Japan (Reuters) – Bank of Japan Governor Kazuo Ueda said on Saturday that many central bankers in the Group of Seven countries seem to feel that the impact of past interest rate hikes is not yet fully felt and are looking forward to guiding future monetary policy.

“The participants seem to all be aware that the impact of previous interest rate increases has not yet fully appeared on their countries’ economies and inflation, and it could begin to appear more in the future,” Ueda said at a press conference following a meeting of chief financial officials of the Group of Seven held in Japan. .

“Many said they want to guide monetary policy, taking this point into consideration,” he added.

Turning to Japan’s economy, Ueda said he had told his G7 counterparts that the economy had recovered, and that consumer price inflation, currently over 3 percent, would start to slow in the middle of the current fiscal year ending in March 2024.

“I told the G7 meeting that Japan maintains a very accommodative monetary policy to achieve the Bank of Japan’s target of 2 percent inflation in a sustainable and stable manner,” he said.

Ueda and Finance Minister Shunichi Suzuki spoke at the press conference after the meeting of senior finance officials of the Group of Seven, which Japan chaired this year in Niigata, which concluded on Saturday.

(Prepared by Amira Zahran for the Arabic Bulletin – Edited by Mahmoud Salama)