Japan’s central bank governor, Kazuo Ueda, signaled a moderate economic recovery in recent remarks according to PANews. He anticipates Japan’s inflation rate will briefly drop below 2% at the start of fiscal year 2026 before accelerating and aligning with the 2% target later in the forecast period. Ueda highlighted an ongoing trend of simultaneous wage growth and price increases, attributing this to the increasing influence of exchange rates on prices. To achieve price stability, he underscored the bank’s commitment to adjusting its monetary easing policy as needed. If economic conditions and inflation show further improvement, interest rate hikes may be considered.