BoJ Deputy Governor Uchida (post-policy press conference) says Japan's economy has moderately recovered, although some weakness have been seen in part

Economy: Risk of significant economic slowdown appears to have decreased compared with some while ago. Japan's economy has been developing generally in-line with the baseline scenario. Financial conditions have been accommodative.  Inflation: There is a risk of underlying inflation deviating upward to a level above the price target.  Important for inflation to stabilise around the 2% level. FX: FX has a larger impact on prices than in the past. Board discussed FX at every meeting, given its impact on the economy and prices. FX could affect underlying inflation. Will conduct policy whilst assessing how FX affects prices. Wages: Base salary gain is to stabilise around the mid-3% level this year. Wage-price mechanism has taken root. Interest Rates: Real interest rates have been negative mainly in short- and medium term zone. Will examine the likelihood of realising the baseline scenario, as well as risks, when considering the timing and pace of policy adjustment. Will continue to raise the policy rate in response to developments in economic activity, prices and financial conditions. Decided to hike rates today based on both the main economic scenario and risks. Will conduct monetary policy appropriately to avoid falling behind the curve. Need to make judgement on rate hike pace based also the upward risk to prices. Ueda: Cannot reveal Ueda's view. Ueda's broad view remains the same as he has discussed before. His hospitalisation is short-term, as such, does not see impact on monetary policy conduct. Does not think Ueda's absence has a big impact. Neutral Rate:  Neutral rate estimates are too diverse to be useful for monetary policy. Can only think about when to reach neutral rate, as and when, we raise rates. BoJ-Govt Accord:The rate hike decision is aligned with the government's economic policy.Middle East: Various moves seen in the Middle East situation are desirable. Uncertainties remain on the recovery pace of logistics. Need to pay close attention to how Middle East developments affect financial and FX markets, as well as Japan’s economy and prices. He will continue to look at the impact of the Middle East situation when asked about the pace of future rate hikes.