Summary of speech by the Governor of the Bank of Japan

1. Neutral interest rate: The Bank of Japan is still in the process of raising interest rates to a neutral level. 2. Rate hike: There is currently no immediate need for a rate hike. If the economy does not slow down significantly, a rate hike is possible. 3. Inflation: Current core inflation is slightly below 2%. With the Japanese economy slowing down, inflation may temporarily rise. Long-term price expectations have not seen a significant increase. 4. Oil prices: The impact of oil prices on prices may be greater than before. The likelihood of a crisis similar to the oil crisis of the 1970s is low. 5. Private credit: Japan does not have a large exposure to private credit. 6. Monetary policy: Implementing monetary policy adjustments under the current circumstances is extremely difficult.