China's GDP growth picks up to 4.5% in third quarter
Growth exceeded the 4.4% forecast, while authorities have expanded housing and credit support without introducing large-scale stimulus.
BOJ's Ueda says underlying inflation is near 2% target
The governor said tight labor conditions and global AI demand were adding to price pressures ahead of the central bank's policy meeting.
Bank of Japan Governor Kazuo Ueda said on October 19 that underlying inflation was nearing the bank's 2% goal, with labor shortages and strong worldwide demand for artificial intelligence contributing to upward pressure on prices.
Speaking in parliament, Ueda said keeping underlying inflation anchored around the target was increasingly important. He pointed to several sources of price pressure: higher raw material costs linked to the Middle East conflict, tight labor conditions and a moderate economic recovery.
Ueda said global AI demand was lifting exports and capital spending, contributing to price increases across a broad range of goods. His comments preceded the BOJ's policy meeting later in October, when it will publish updated quarterly forecasts for growth and inflation.
The governor also said appropriately paced interest rate increases would help prevent bond yields from spiking. With underlying inflation nearing 2% and financial conditions still accommodative, he warned that failing to adjust rates appropriately could fuel concerns about inflation exceeding the target and drive long-term interest rates higher.