BoJ Governor Ueda says price trend is rising gradually and underlying inflation is gradually accelerating towards the 2% target

• Will implement appropriate policy to maintain stable prices.
• Will guide monetary policy suitably to steadily and durably achieve the 2% price target.
• Expect underlying inflation to approach the target in the latter half of fiscal 2026 through fiscal 2027.
• Reaffirmed stance that it will act flexibly in exceptional situations when JGB yields suddenly rise.
• BoJ to conduct bond operations flexibly in exceptional cases.

Governor Ueda's comments indicate a gradual improvement in price trends and underlying inflation in Japan, suggesting a targeted approach to achieving their 2% inflation goal. The timeline for reaching this target extends to late fiscal 2026, which positions the Bank of Japan as still accommodative in its monetary policies, particularly in managing JGB yields. This implies a continued environment of low rates, impacting the JPY and potentially supporting commodities like gold, which may react to currency fluctuations.