Bank of Japan Governor Kazuo Ueda indicated the need for continued interest rate hikes to curb inflation, ahead of a key policy meeting. Ueda stated that if the central bank assesses an increased likelihood of achieving its baseline scenario—where Middle East tensions ease and core inflation gradually rises to around 2% amid moderate economic growth—then it would continue to raise policy rates at an appropriate pace. His comments suggest a rate hike this month is likely, though less explicitly than previous hikes, reflecting a desire for flexibility amid complex Middle East dynamics and Japanese Prime Minister Sanae Takaichi's monetary policy stance.