Bank of Japan Deputy Governor Uchida:
- The direct impact of U.S. tariff hikes on Japanese firms is likely to first appear in export profitability or export volume.
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We will scrutinise how such downside and upside risks affect our price outlook via corporate wage and price-setting behaviour.
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We must adjust monetary policy to best balance upside and downside risks from the perspective of maintaining economic and price stability.
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The BoJ aims to take an orthodox, robust monetary policy approach, especially because uncertainty is extremely high.
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It is important to firmly support economic activity by maintaining accommodative financial conditions.
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Large-scale monetary easing was a necessary policy, but there is no such thing as a free lunch.
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Only when the BoJ makes a successful exit can it be judged that our monetary easing had a positive effect on Japan’s economy.
Uchida adding to his cautious comments here:
This article was written by Eamonn Sheridan at investinglive.com.
