Woofun AI reports that Bank of Japan Governor Haruhiko Kuroda disclosed the central bank's stance on monetary policy amidst rising inflationary pressures. Although economic growth may decelerate, Kuroda affirmed that recovery will proceed at a modest pace, necessitating continued interest rate adjustments based on prevailing economic and price conditions. The BoJ will carefully weigh the timing and pace of these hikes against baseline projections and associated risks, particularly as underlying inflation approaches the 2% target.

Meanwhile, the central bank is closely monitoring external shocks, including conflicts in the Middle East and high oil prices, which could push inflation beyond the 2% threshold. Kuroda also highlighted the need to track the profitability of artificial intelligence investments and the influence of overseas non-bank financial institutions on Japan’s financial stability. Despite these variables, he concluded that "Japan’s financial system remains stable" and the current accommodative environment continues to support economic activity.