BoJ Governor Optimistic About Japan's Economic Recovery

Bank of Japan (BoJ) Governor Kazuo Ueda expressed cautious optimism about the nation's economic recovery, describing it as "moderate" 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.

Future Monetary Policy Adjustments

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

Inflation and Wage Growth

Addressing inflation, Ueda noted that while Japan's inflation rate remains below the 2% target, it is "gradually rising" in tandem with wage increases. This positive trend suggests a strengthening economy, capable of supporting higher interest rates in the near future.