Deputy Governor Shinichi Uchida emphasized that while diplomatic progress between the U.S. and Iran offers a glimmer of stability, the actual distribution of oil remains shrouded in uncertainty. This supply-side ambiguity complicates the bank's efforts to anchor inflation. Despite these external headwinds, Uchida noted that the risk of a sharp domestic economic downturn has receded.

Central to the bank’s current strategy is the observed synchronization of wage and price growth. Uchida confirmed that the mechanism driving these factors in tandem is becoming firmly embedded, with wage increases now tracking levels consistent with the bank's 2% price target. Regarding the path forward, officials remain cautious; the bank will gauge the neutral interest rate by monitoring the specific impact of recent hikes on Japan's broader financial environment rather than relying on wide-band estimates.