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BoJ Governor Ueda says Middle East situation remains uncertain

Importance
Level 1
  • Economy recovering modestly albeit with some weakness
  • Japan's economic growth is likely to slow down in FY26 due to Middle East situation
  • Growth to slow in FY26
  • Need to pay close attention to the risk of inflation deviating upwards
  • Will continue to lift the policy rate and adjust the degree of accommodation according to economic activity, prices, and financial conditions
  • Takata suggested including a line on CPI already achieving the target level.
  • Tamura suggested including a line that underlying inflation is in line with the inflation target in the outlook report