The Governor of the Bank of Japan reiterated the risk of inflation exceeding the 2% target and stated that interest rates will be further increased at an appropriate time.

Bank of Japan Governor Kuroda Haruhiko said in a speech on Wednesday that the Bank of Japan sees a risk of inflation exceeding its 2% target and will consider further rate hikes at an appropriate time, reaffirming the message conveyed by policymakers recently. "Given that core inflation is moving towards 2% and financial conditions remain accommodative, we expect to continue raising interest rates and adjust the degree of monetary easing based on economic activity, prices, and financial conditions," Kuroda said in a statement read by Deputy Governor Hamaoka Noriyuki. Kuroda had been hospitalized for treatment of a liver cyst infection and only returned to work on Tuesday. Kuroda said the timing and pace of these adjustments will depend on the impact of the Iran war and other factors.