BoJ's Cautious Stance on US Policies

The Bank of Japan (BoJ) has emphasized its intention to closely monitor the policies of United States President Donald Trump and their potential impact on the global economy, as well as financial and capital markets worldwide. This was highlighted in a summary of opinions from the central bank's March meeting.

Potential Risks to Japan's Economy

"Downside risks originating from the United States have significantly increased recently. Depending on the evolution of tariff-related issues, these risks could adversely affect Japan's real economy. In such scenarios, the BoJ will need to exercise particular caution regarding the timing of any policy interest rate adjustments," the summary elaborated.

Achieving Price Stability

Japan's economy is nearing the achievement of its price stability target, primarily due to inflationary pressures from domestic factors. "In fiscal 2025, the Bank will enter a new phase, requiring it to consider this achievement in its public communications," one opinion noted.