BOJ CHIEF SAYS UNDERLYING INFLATION QUITE CLOSE TO PRICE GOAL

What happened: BOJ governor Kazuo Ueda told parliament that underlying inflation is "quite close" to the central bank's 2 per cent target, signalling scope for further rate increases ahead of the BOJ's two-day policy meeting concluding on Oct 30. Key numbers: 2 per cent inflation target; Why it matters: Many in the central bank are cautious about another hike this month and prefer to gauge how past increases affected financial conditions, while markets watch the quarterly forecasts for timing clues. Ueda said failing to adjust the policy rate appropriately could push up long-term rates.

BOJ governor Kazuo Ueda told parliament that underlying inflation is "quite close" to the central bank's 2 per cent target, signalling scope for further rate increases ahead of the BOJ's two-day policy meeting concluding on Oct 30.

Many in the central bank are cautious about another hike this month and prefer to gauge how past increases affected financial conditions, while markets watch the quarterly forecasts for timing clues. Ueda said failing to adjust the policy rate appropriately could push up long-term rates.