BoJ’s Uchida: If forecasts met the Bank will adjust policy further

If forecasts met the Bank will adjust policy further.

It will be possible for the bank to proceed while examining the response of economic activity if it raises the policy interest rate at a pace in line with expectations.

At present, the Bank does not know for certain what the interest rate level that is neutral to economic activity and prices will be.

The Bank will examine the response of economic activity and prices as it raises the policy interest rate.

If the outlook for economic activity and prices presented in the outlook report is realized, the bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation.

Uncertainties regarding the global economy remain high, and due attention continues to be warranted here.

Wages are likely to keep rising steadily and support private consumption.

Adjusting the degree of monetary accommodation gradually, while maintaining accommodative financial conditions, will lead to stability in economic activity and prices in the long run.

Even after raising the policy interest rate to around 0.5%, accommodative financial conditions have continued to firmly support the economy.

Private consumption has been on a moderate increasing trend.

Corporate capex is likely to keep rising for an extended period.

Japan's economy is expected to keep growing at a pace above the potential growth rate.

Japan's economy has recovered moderately, although some weakness has been seen.

The decrease in the amount outstanding of its JGB holdings has been limited, and therefore monetary easing effects are likely to continue at a large scale.

In principle, long-term interest rates are to be formed freely in financial markets.

In an exceptional situation where long-term interest rates rose rapidly in a manner that differed from normal market developments, the bank would make a nimble response, such as increasing JGB purchases.

The Bank has not changed its thinking on the policy conduct regarding the short-term policy interest rate and on JGB purchases.