Svmuu News Bank of Japan (BOJ) Governor Kazuo Ueda said Wednesday that Japan’s economic growth may slow but will continue to recover moderately.The risk that inflation could exceed 2% remains, and the Bank of Japan (BOJ) will continue to raise interest rates in line with economic, price, and financial conditions, while assessing the impact of the conflict in the Middle East and considering the timing and pace of future rate hikes. He noted that, following recent rate hikes, financial conditions remain accommodative and continue to support economic activity.
Regarding inflation, the is expected to continue raising interest rates as core inflation approaches 2%, with the timing and pace of future rate hikes to be determined after carefully assessing the likelihood of the baseline forecast and associated risks. Additionally, against the backdrop of high oil prices, underlying inflation may exceed the Bank of Japan (BOJ)’s 2% target.He also noted that Bank of Japan (BOJ) must closely monitor developments in the Middle East, the profitability of investments related to artificial intelligence, and the potential impact of overseas non-bank financial institutions’ activities on Japan’s financial system. Kazuo Ueda stated, “Overall, Japan’s financial system remains stable.” The above remarks were read on his behalf by Deputy Governor Ryozō Himino of Bank of Japan (BOJ). (Jinshi)