Bank of Japan Governor Kazuo Ueda told Prime Minister Sanae Takaichi on Tuesday that the central bank is moving carefully as it adjusts monetary support in an effort to bring inflation toward the two percent goal. His remarks followed their first one to one meeting since Takaichi took office last month.

Ueda said the two held open discussions on price trends, financial conditions and the path for monetary policy. He added that they also reviewed recent currency movements, stressing that it is preferable for exchange rates to remain stable and reflect Japan’s economic fundamentals.

The meeting drew intense scrutiny from …