BOJ's Ueda says 'very likely' to hike rates if inflation keeps rising

WASHINGTON -Bank of Japan Governor Kazuo Ueda said on Friday the central bank"very likely" will raise interest rates if underlying inflation continues to go up, and begin reducing its huge bond buying at some point in the future.

"We will proceed cautiously, initially assessing the impact of our recent policy changes on the economy and inflation, then considering further adjustment as deemed appropriate, perhaps extracting insights on the neutral rate along the way," Ueda told a seminar hosted by the Peterson Institute for International Economics.

"Irrespective of what the data will say in the near future, we will like to find a way and timing to reduce the amount of JGB purchases," he said, adding that the central bank will take time in reaching a decision. In March, the BOJ ended eight years of negative interest rates and other remnants of its unorthodox policy, making a historic shift away from its focus on reviving growth and quashing deflation with decades of massive monetary stimulus.

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