Bank of Japan Governor Kazuo Ueda said on Wednesday that Japan’s economic growth may slow, but the economy is expected to continue a moderate recovery. According to Odaily, Ueda said inflation risks remain, including the possibility that inflation could exceed the 2% level, and the central bank will continue raising interest rates based on economic, price, and financial conditions.
Ueda said the Bank of Japan will consider the timing and pace of further rate increases while assessing the impact of the Middle East conflict. He added that financial conditions remain accommodative even after recent rate hikes and continue to support economic activity.
On inflation, Ueda said the central bank expects to keep raising rates as underlying inflation approaches 2%. He said decisions on the timing and pace of future hikes will be made after carefully examining the likelihood of achieving the baseline outlook and related risks.
Ueda also said that against the backdrop of high oil prices, underlying inflation could exceed the Bank of Japan’s 2% target. He added that the central bank must closely monitor developments in the Middle East, the profitability of artificial intelligence-related investment, and whether overseas non-bank financial institutions’ activities could affect Japan’s financial system.
Ueda said Japan’s financial system remains stable. His remarks were read on his behalf by Bank of Japan Deputy Governor Ryozo Himino.
Bank of Japan Governor Ueda Says Rate Hikes to Continue as Inflation Risks Persist
2026-06-24 07:14:17
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