BoJ Deputy Governor Uchida (post-policy press conference) says Japan's economy has moderately recovered, although some weakness have been seen in part

Economy:

• Risk of significant economic slowdown appears to have decreased compared with some while ago.
• Japan's economy has been developing generally in-line with the baseline scenario.
• Financial conditions have been accommodative. 

Inflation:

• There is a risk of underlying inflation deviating upward to a level above the price target. 
• Important for inflation to stabilise around the 2% level.

FX:

• FX has a larger impact on prices than in the past.
• Board discussed FX at every meeting, given its impact on the economy and prices.
• FX could affect underlying inflation.
• Will conduct policy whilst assessing how FX affects prices.

Wages:

• Base salary gain is to stabilise around the mid-3% level this year.
• Wage-price mechanism has taken root.

Interest Rates:

• Real interest rates have been negative mainly in short- and medium term zone.
• Will examine the likelihood of realising the baseline scenario, as well as risks, when considering the timing and pace of policy adjustment.
• Will continue to raise the policy rate in response to developments in economic activity, prices and financial conditions.
• Decided to hike rates today based on both the main economic scenario and risks.
• Will conduct monetary policy appropriately to avoid falling behind the curve.
• Need to make judgement on rate hike pace based also the upward risk to prices.

Ueda:

• Cannot reveal Ueda's view.
• Ueda's broad view remains the same as he has discussed before.
• His hospitalisation is short-term, as such, does not see impact on monetary policy conduct.
• Does not think Ueda's absence has a big impact.

Neutral Rate: 

• Neutral rate estimates are too diverse to be useful for monetary policy.
• Can only think about when to reach neutral rate, as and when, we raise rates.

BoJ-Govt Accord:

• The rate hike decision is aligned with the government's economic policy.

Middle East:

• Various moves seen in the Middle East situation are desirable.
• Uncertainties remain on the recovery pace of logistics.
• Need to pay close attention to how Middle East developments affect financial and FX markets, as well as Japan’s economy and prices.
• He will continue to look at the impact of the Middle East situation when asked about the pace of future rate hikes.