Ueda Kazuo: As underlying inflation rises, further interest rate hikes will be pursued in the future

Odaily Planet Daily News: Bank of Japan Governor Kazuo Ueda said on Wednesday that Japan's economic growth may slow down but will continue to recover moderately. The risk of inflation exceeding 2% remains, and the Bank of Japan will continue to raise interest rates based on economic, price, and financial conditions. It will also consider the timing and pace of rate hikes while assessing the impact of the Middle East conflict. He stated that after the recent rate hike, financial conditions remain accommodative, continuing to support economic activity.

Regarding inflation, it is expected that rate hikes will continue as underlying inflation approaches 2%. The timing and pace of future rate hikes will be decided after careful examination based on the likelihood of achieving baseline forecasts and associated risks. Additionally, against the backdrop of high oil prices, potential inflation may exceed the Bank of Japan's 2% target. He also said that the Bank of Japan must closely monitor developments in the Middle East situation, the profitability of AI-related investments, and the potential impact of overseas non-bank financial institutions' activities on Japan's financial system. Ueda Kazuo stated: "Overall, Japan's financial system remains stable." The above speech was read on his behalf by Bank of Japan Deputy Governor Ryozo Himino. (Jin Shi)