BoJ Governor Ueda on Economic Recovery and Monetary Policy

Bank of Japan (BoJ) Governor Kazuo Ueda highlighted a "moderate" economic recovery in Japan, despite certain sectors lagging. In a pivotal statement at the 100th Trust Conference, Ueda outlined the bank's readiness to adjust monetary policies based on sustained economic improvement.

Future Rate Adjustments and Economic Monitoring

"Should the economic recovery persist as forecasted, we will proceed with raising the policy interest rate and modifying the extent of monetary easing," Ueda explained. 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 Trends

Addressing inflation, Ueda noted it remains below the 2% target but is on a "gradual rise", paralleling wage increases. This observation underscores the interconnectedness of wage growth and inflation in Japan's current economic landscape.