BoJ Governor Ueda Optimistic About Japan's Economic Recovery

Bank of Japan (BoJ) Governor Kazuo Ueda expressed cautious optimism about the country's economic recovery, describing it as "moderately" progressing despite certain sectors lagging behind. Ueda highlighted the central bank's readiness to adjust monetary policies, including rate hikes, should the current economic trajectory persist.

Monetary Policy Adjustments on the Horizon

Speaking at the 100th Trust Conference, Ueda outlined the BoJ's strategy: "If the economic recovery continues and aligns with our projections, we will proceed to raise the policy interest rate and adjust the degree of monetary easing." He emphasized the importance of monitoring both domestic and international economic indicators, including the effects of US tariff policies on global markets.

Inflation and Wage Growth Under Scrutiny

Ueda also touched on Japan's inflation rates, currently below the 2% target but showing signs of gradual increase alongside wage growth. This development is critical for the BoJ's future policy decisions, as it seeks to balance economic stimulation with inflation control.