BoJ Governor Ueda says Japan’s economy is recovering moderately, albeit with some weakness; September Tankan showed business sentiment remained in good shape.

POLICY The pace and timing of future policy adjustments will be decided based on the likelihood of the baseline projections materialising and associated risks. BoJ will continue to raise the policy rate in accordance with economic activity, prices and financial conditions. PRICES Prices are moving in line with the BoJ’s baseline forecasts. It is important to anchor underlying inflation around 2%. FINANCIAL CONDITIONS Financial conditions are accommodative. Accommodative financial conditions continue to support economic activity even after the September rate hike.