Ueda keeps tightening bias intact, flags further hikes if outlook firms.Summary:Ueda reiterates conditional tightening biasRates to rise if outlook materialisesUnderlying inflation still below 2%Policy aimed at preventing overshootBoJ says not “behind the curve”Inflation expected to re-accelerateNo change to January projectionsBank of Japan Governor Kazuo Ueda reinforced the central bank’s tightening bias, signalling that further rate hikes remain likely if incoming data strengthen confidence in the Bank’s economic and inflation forecasts.In comments reported by Yomiuri, Ueda said the BoJ’s “basic stance” is to continue raising interest rates if the probability of its growth and price projections materialising increases. While underlying inflation has yet to fully reach the 2% target, policy will be guided to ensure it converges sustainably to around that level without overshooting on a persistent basis.Ueda added that the Bank does not believe it is behind the curve in addressing the risk of excessive inflation, and said there has been no change since January to the projected timing for achieving the price target. He expects inflation to re-accelerate following the current slowdown.Importantly, Ueda flagged upside risks. If the outcome of the spring wage negotiations proves stronger than expected and firms pass higher labour costs through to prices more swiftly, the 2% inflation target could be achieved sooner than currently projected — a comment that tilts hawkish at the margin.Looking ahead, Ueda noted that while the April Tankan survey will be an important input, the BoJ is conducting multiple surveys and does not need to wait for the Tankan release to have sufficient data. With policy meetings scheduled for March and April, he said the Bank will scrutinise all available information and reach a decision, responding to growing market speculation that a rate hike could come as early as April.He also said there has been no change since January to the projected timing for achieving the price target and that inflation is expected to re-accelerate following the current slowdown.Taken together, the comments suggest the BoJ remains in gradual tightening mode, with further rate hikes dependent on confirmation that underlying inflation dynamics are firming sustainably toward target. This article was written by Eamonn Sheridan at investinglive.com.