BoJ board member Nakagawa:
- U.S. tariff policy, overseas economic and market developments among risks to Japan’s economic outlook
- Uncertainty over U.S. tariffs could affect household, corporate sentiment, Japan’s economy and prices
- Excessive market volatility may put downward pressure on Japan’s economy
- Companies still in process of passing on raw material costs
- Considering current real interest rate levels, future monetary policy conduct will depend on developments in economic activity and prices as well as financial conditions
- There is risk wage pressure may strengthen further, translated into sales prices
- Worsening consumer sentiment could disrupt cycle of rising income and expenditure
- If outlook for economic activity and prices is realised, BOJ will continue to raise interest rate and adjust degree of monetary accommodation
Nothing of surprise here from board member Nakagawa.
