BoJ’s Ueda: Japan’s economy recovering moderately

Japan’s economy recovering moderately despite weak signs.

Will increase interest rates upon realization of strong economic outlook.

To increasingly raise policy rate to adjust monetary support in line with economic and price forecasts.

Monitoring effects of various risks on economic outlook.

Sees moderate increase in private consumption trend.

Maintains stance to support economic activity.

Sees rise in income in both corporate and household sectors.

Gradually adjusting monetary support will help achieve price target through sustained economic growth.

Must monitor various risks, including US economy.

Increase in spending is gradually intensifying virtuous cycle.

To monitor wage negotiations in the future.

Sees executives of large firms announce commitment to sustained wage growth.

Firms should pass on higher labor costs through price hikes.

Gradual adjustment to easing to aid inflation goal.

Long-term inflation expectations embedded among households and firms.

Supports firm monetary policy to boost the economy.

Projects strengthening inflationary pressure from wage increases.

High uncertainty over future growth pace in China.

Expects underlying inflation to continue rising moderately.

To focus on outlook of wage negotiations and how increased wages will affect inflation.

It is crucial to achieve a sustained increase in real wages, such as by raising productivity.

Sees increasing likelihood of soft landing.

Need to monitor US economy carefully.

Cautions volatile markets based on economic data and geopolitical risks.

Underlying inflation expected to moderately increase.

High uncertainty over China's growth rate.

Japan's economy and prices remain vulnerable to volatile market moves.