Wage gains to push up inflation 39;from summer towards autumn39;
BOJ may hike rates if more convinced trend inflation nears 2
Decision to hike rates this year will be 39;data dependent39;
Finance minister repeats verbal intervention vs yen falls
BOJ Ueda39;s remarks push up yen, Japanese bond yields

TOKYO, April 5 Reuters Bank of Japan Governor Kazuo Ueda said inflation would likely accelerate from summer towards autumn as bumper pay hikes push up prices, the Asahi newspaper reported on Friday, his strongest hint yet that another rate hike was possible in coming months.

The rare mention of an explicit timing drove twoyear Japanese bond yields to their highest in more than a decade, helping the yen pull further away from the 34yearlow hit last week and providing some respite for policymakers worried about the economic effects of the currency39;s weakness.

In an interview with Asahi, Ueda said the central bank could respond with monetary policy if currency moves significantly drive inflation and wages, suggesting sharp yen falls could affect the timing of the next rate hike.

We ended our massive stimulus programme because we saw prospects for trend inflation to approach 2 come into sight. If we become more confident about such prospects, that will be one reason to move interest rates, Ueda was quoted as saying.

Sustainable and stable achievement of our 2 inflation target is coming into sight. The possibility of achievement is expected to increasingly heighten, he…