Shigeta Kazuo: If the economic and price trends align with forecasts, interest rates will continue to rise.
Bank of Japan Governor Kuroda Haruhiko: With overseas economies returning to moderate growth, Japan's economic growth is expected to pick up subsequently. The potential inflation rate and the speed of inflation will gradually accelerate, reaching levels consistent with the price target in the latter half of the forecast period. The Japanese economy is experiencing a mild recovery, but there are still some signs of weakness. The response of overseas economies and prices to trade policies remains highly uncertain. Loose monetary policy will support the economy. It is necessary to pay attention to the impact of trade policy on finance, foreign exchange markets, the Japanese economy, and prices. If economic and price trends align with forecasts, and continue to improve, policy rates will be raised. It is crucial to judge the outlook without any preconceived notions. Considering the impact of policies from various countries, the balance of risks for the economy is expected to be lower by 2026.
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