[Bank of Japan Governor: Underlying Inflation 'Very Close' to Price Target] Jin10 Data, October 19 – Bank of Japan Governor Kazuo Ueda stated on Monday that the underlying inflation level is 'very close' to the central bank's 2% target. The strong global demand for artificial intelligence is combining with inflationary pressures stemming from a tight labor market, creating a compounding effect. These remarks were made ahead of the Bank of Japan's critical policy meeting later this month, during which the bank will release its latest quarterly growth and inflation forecasts. The market will closely watch for any hints regarding the timing of the next interest rate hike. Ueda said, 'Anchoring the underlying inflation rate near the 2% target level is becoming increasingly important.' He pointed out that the Middle East conflict has led to rising raw material costs, driving inflation higher. Meanwhile, a tight labor market and moderate economic recovery have also contributed to demand-driven price pressures. He added, 'The strong global demand for artificial intelligence is boosting capital expenditures and exports, thereby driving up the prices of various goods.' Ueda also stated that raising interest rates at an appropriate pace would help avoid sharp fluctuations in bond yields.