On June 24, Bank of Japan Governor Kazuo Ueda stated on Wednesday that while Japan's economic growth may slow, it will continue to recover moderately. The risk of inflation exceeding 2% remains, and the Bank of Japan will continue to raise interest rates based on economic, price, and financial conditions, while considering the timing and pace of rate hikes in light of the impact of conflicts in the Middle East. He noted that after recent rate increases, the financial environment remains accommodative, continuing to support economic activity. Regarding inflation, he expects to continue raising rates as core inflation approaches 2%, with the timing and pace of future hikes to be carefully examined based on the likelihood and risks of baseline forecasts being realized. Additionally, against the backdrop of high oil prices, underlying inflation may exceed the Bank of Japan's 2% target. He also mentioned that the Bank must closely monitor developments in the Middle East, the profitability of investments related to artificial intelligence, and the potential impact of activities by overseas non-bank financial institutions on the Japanese financial system. Ueda stated, 'Overall, the Japanese financial system remains stable.' This speech was read by Bank of Japan Deputy Governor Masayoshi Amamiya.