Per Woofun AI, Bank of Japan Governor Kuroda Haruhiko disclosed that the central bank will persist with interest rate hikes contingent on economic, price, and financial conditions, aiming to reach the 2% inflation target from the second half of this fiscal year into the next. Kuroda emphasized that the timing and pace of these adjustments will be guided by baseline forecasts and risk assessments, noting that the Japanese financial environment remains accommodative despite recent tightening measures.

He cautioned that elevated oil prices could propel inflation beyond the 2% threshold and trigger broader commodity price increases, with policy decisions also factoring in the impact of the Middle East conflict. Following this statement, the USD/JPY pair retreated nearly 10 pips to 161.66, signaling heightened market expectations for further Bank of Japan rate hikes.