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.
We will scrutinise how such downside and upside risks affect our price outlook via corporate wage and price-setting behaviour.
We must adjust monetary policy to best balance upside and downside risks from the perspective of maintaining economic and price stability.
The BoJ aims to take an orthodox, robust monetary policy approach, especially because uncertainty is extremely high.
It is important to firmly support economic activity by maintaining accommodative financial conditions.
Large-scale monetary easing was a necessary policy, but there is no such thing as a free lunch.
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:
