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 accommodative and supportive o

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 accommodative 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.