Bank of Japan Governor Ueda Kazuo says the BOJ will proceed "cautiously" with its 2-percent inflation target amid progress on prices and wages.

Ueda made the remark in a speech on Monday.

The BOJ hosted a conference in Tokyo, inviting economists and central bank officials from Japan and abroad.

Ueda said there had long been entrenched expectations in Japan that inflation would remain at around zero.

But he said prices increased and wages rose sharply from 2023 to 2024. He said this was likely due to global inflation and the continuation of the easing framework.

Ueda said: "Our primary objective is to achieve 2-percent inflation in a sustainable and stable manner. Thus far, we have made progress in moving away from zero and lifting inflation expectations, but we must now re-anchor them, this time at the 2-percent target. We will proceed cautiously, as do other central banks with inflation-targeting frameworks. "

Ueda described some of the issues in Japan as "uniquely difficult."

The Bank of Japan in March ended its negative interest rate policy, marking a shift away from its massive easing.

The focus is now on how much the bank will reduce bond purchases and the timing of another rate increase.