BOJ will raise rates if underlying inflation approaches 2
BOJ has no preset schedule in mind on future rate hikes
Underlying domestic inflation seen accelerating, Ueda says
Ueda warns of unstable markets, US economic uncertainty

OSAKA, Sept 24 Reuters The Bank of Japan can afford to spend time scrutinising market and overseas economic developments in setting monetary policy, governor Kazuo Ueda said on Tuesday, suggesting that the central bank was in no rush to raise interest rates further.

Ueda reiterated that the BOJ will raise interest rates if underlying inflation accelerates towards its 2 target as projected, a sign there was no change to its stance to gradually push up borrowing costs from still nearzero levels.

But he warned of risks surrounding the outlook, such as volatile financial markets and uncertainty on whether the U.S. economy can achieve a soft landing.

We must conduct policy in a timely, appropriate fashion without having any preset schedule in mind, taking into account various uncertainties, Ueda said in a speech to business leaders in the western Japan city of Osaka.

The yen39;s onesided declines have reversed since August and significantly lowered the risk of an inflation overshoot by moderating the pace of rise in import prices, Ueda said.

We need to scrutinise market moves and overseas economic developments behind them in setting monetary policy. We can afford to spend time doing this, he said.

The remarks highlight a shift in the…