BOJ Gov. Ueda restates stance on policy normalization after market rout

TOKYO -- The Bank of Japan will continue to pursue policy normalization as long as the economy continues to progress toward stable 2% inflation, Gov. Kazuo Ueda reiterated on Friday as he responded to lawmakers' questions in a hearing by a financial affairs committee.

"There is no change to our basic stance that we will adjust monetary policy as we gain confidence in the likelihood" of the economy achieving stable 2% inflation, said Ueda. The hearing was called after a rate hike by the BOJ on July 31 sparked major market turmoil in the ensuing week, prompting lawmakers to demand explanations about how the BOJ intends to proceed with the policy it embarked on in March.