BoJ's Governor Ueda says basic stance is to continue hiking interest rates if the likelihood of our economic, price forecasts materialising heightens, according to Yomiuri

• Underlying inflation has not yet fully reached 2% and policy will be guided to get underlying inflation to around 2%, while avoiding it exceeding 2% on a sustained basis.
• No change from January to the BoJ’s projected timing for hitting its price target, with inflation expected to re-accelerate from the current slowdown.

Governor Ueda's remarks suggest a cautious but determined approach from the BoJ regarding interest rates, signaling readiness to hike if economic conditions support achieving their inflation target. The emphasis on underlying inflation not yet meeting the 2% target indicates potential for gradual policy adjustments, impacting market expectations for the JPY and affecting interest rate forecasts, especially given the mention of inflation re-accelerating.