BOJ flags more rate hikes after lifting benchmark to 1%

Bank of Japan Governor Kazuo Ueda signaled further interest-rate increases on Wednesday after the central bank last week raised its benchmark rate to 1%, the highest level since 1995. Ueda said the BOJ sees a risk that inflation could exceed its 2% target and expects to keep adjusting monetary support as underlying inflation moves toward that goal and financial conditions stay accommodative. He said the timing and pace of any additional hikes will depend in part on the impact of the war in Iran. The BOJ voted 7-1 for last week's increase, and a summary of opinions released Wednesday also pointed to the need for more tightening. The yen remained near its weakest level in almost 40 years.