Bank of Japan governor nominee Kazuo Ueda said on Monday that the BOJ needs to maintain its inflation-overshooting commitment for the time being.

However, Ueda told lawmakers that the BOJ will must pay attention to the risk that the overshooting commitment causes considerably higher prices.

Ueda also said that he doesn’t see the need to change the 2% price target but said “I cannot commit not to change the target now.”

When asked about a review of the BOJ's yield curve control policy, Ueda said that he will carefully monitor the effects of December's decision to widen the 10-year interest rate to restore the functioning in financial markets.

The overshooting commitment made in September 2016 commits the BOJ to continue expanding the monetary base until the year-on-year rate of increase in the observed consumer price index (CPI, all item less fresh food) exceeds the price stability target of 2% and stays above the target in a stable manner.