BoJ Governor Ueda Optimistic About Economic Recovery

Bank of Japan (BoJ) Governor Kazuo Ueda expressed cautious optimism about Japan's economic recovery, describing it as "moderately" progressing despite certain sectors lagging behind. Ueda's remarks came during the 100th Trust Conference, where he outlined the central bank's future monetary policy direction.

Monetary Policy Adjustments on the Horizon

"Should the current economic recovery persist and align with our projections, we are prepared to incrementally increase the policy interest rate and adjust the level of monetary easing," Ueda stated. He emphasized the importance of vigilant monitoring of both domestic and international economic indicators, including the effects of US tariff policies and financial market dynamics.

Inflation and Wage Growth in Focus

Addressing inflation concerns, Ueda noted that while Japan's inflation rate remains below the 2% target, there is a gradual uptick, supported by rising wages. This development is critical for sustaining the economic momentum and achieving the bank's inflation objectives.