Japan's Economic Outlook

Bank of Japan (BoJ) Governor Kazuo Ueda announced on Wednesday that Japan's economy is on a path of moderate recovery, despite certain sectors lagging behind. This positive trend could lead to further adjustments in monetary policy.

Monetary Policy Adjustments

"Should the economic recovery persist and align with our projections, we are prepared to incrementally increase the policy interest rate and modify the extent of monetary easing," Ueda stated during the 100th Trust Conference. He emphasized the importance of monitoring both domestic and international economic and price developments, including the effects of US tariff policies and financial market trends.

Inflation and Wage Growth

Ueda also highlighted that while inflation in Japan remains below the 2% target, there is a gradual uptick, paralleled by rising wages, signaling a slow but steady move towards economic stabilization.