FX.co ★ BoJ to Act if U.S. Tariffs Weigh on Economy: Governor Ueda

The Bank of Japan (BoJ) might contemplate taking policy measures should U.S. tariffs negatively impact Japan’s economy, according to Governor Kazuo Ueda in his discussion with the Sankei newspaper. "A policy response might become necessary," he indicated, commenting that risks associated with U.S. President Trump's trade initiatives have advanced "closer towards the unfavorable scenario" previously anticipated by the central bank. Ueda recognized that recent events are already adversely affecting corporate and household sentiment. Although the board continues to aim for a gradual increase in rates, Ueda emphasized the significance of evaluating the economic implications of U.S. tariffs objectively. He also mentioned that domestic food inflation is expected to decline, real wages are projected to increase by mid-year, and there remain potential risks affecting the inflation outlook from both an upward and downward perspective. The BoJ is scheduled to hold a monetary policy meeting on April 30 and May 1, during which updated economic forecasts will be issued.