Bank of Japan Governor Ueda repeats that To raise rates if economy, prices move in line with forecasts
Will judge without preconceptions whether the economy and prices are on track.
Japan’s economic growth likely to moderate, then pick up as overseas economies return to growth.
Tariff policy creates global uncertainty; a 15% tariff rate would weigh on Japan's economy.
Must maintain an accommodative monetary environment to support the economy.
In judging whether the economy and prices are improving, will scrutinise the global outlook, including the U.S., the impact of tariffs on corporate profits, wage and price-setting behaviour, and price developments.
Will scrutinise whether the baseline forecast for the economy and prices will materialise, as well as upside and downside risks.
There are various uncertainties on Japan’s economic outlook.
The U.S. economy appears to continue moderate growth, but the slowdown in job growth is becoming clearer.
Have not yet seen U.S. tariff impacts spreading to Japan’s overall economy.
There is no doubt tariffs are being widely imposed on U.S. imports; the question is when and in what form the impact will appear.
The slowdown in U.S. employment growth may be a sign that deteriorating corporate profits are beginning to hurt jobs and incomes.
It is possible that momentum to pass on higher prices to wages could weaken if uncertainty over trade policies and overseas economy persists.
Japanese companies' business strategies based on the agreed 15% U.S. tariff rate will eventually become clear.
I'll post more on this separately. Meanwhile, USD/JPY popped to around 147.60 where its found some resitance.
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Yesterday:
