Ueda: US Tariff Uncertainty Poses Risks for Japan's Economy

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Bank of Japan Governor Kazuo Ueda stated on Thursday that uncertainty around U.S. tariff policies has significantly increased recently.

He explained that when the BOJ raised interest rates in January, the U.S. economy was performing well, and financial markets were stable.

However, Ueda pointed out that uncertainty regarding U.S. policies, especially tariffs, has escalated. He emphasized that the BOJ will closely monitor developments and their impact on Japan’s economy, without any preconceived assumptions at each policy meeting.

Ueda also noted that Japan's economy is recovering gradually, with rising wages contributing to accelerating inflation toward the central bank's 2% target. Despite very low real interest rates, the BOJ will continue to raise rates if the economy and prices align with its projections.

However, he stressed the need to remain cautious about the increasing uncertainty surrounding trade policies worldwide.

Paraphrasing text from "Reuters" all rights reserved by the original author