BANK OF JAPAN Governor UEDA said Japan’s economy may slow but remains in a mild
recovery and signaled further rate hikes as underlying inflation approaches 2%.
He said the BOJ will continue raising rates based on economic, price and
financial conditions, with timing and pace to be decided after careful
assessment of baseline forecasts and risks and while gauging the impact of the
Middle East conflict. UEDA noted recent tightening has left financial conditions
still accomodative and supportive of activity, warned high oil prices could
push underlying inflation above 2%, and said the BOJ is monitoring Middle East
developments, profitability of AI-related investment and overseas non-bank
financial activity for implications to Japan’s financial system, which he
described as broadly stable. Remarks were read by Deputy Governor HIMINO.
