Bank of Japan Governor Haruhiko Kuroda indicated potential interest rate hikes as Japan's economy shows signs of moderate recovery. Speaking on December 1, Kuroda noted that inflation might dip below 2% in early 2026 but is expected to rise again. He highlighted the strengthening trend of simultaneous wage and price increases and the growing impact of exchange rates on prices. The central bank is prepared to adjust its accommodative policy to maintain price stability, considering further rate hikes if economic and price conditions continue to improve.