Downside risks exceed upside risks for both economy, prices: BOJ head
TOKYO (Kyodo) -- Bank of Japan chief Kazuo Ueda on Tuesday expressed concern about the outlook for the Japanese economy following U.S. President Donald Trump's tariff hikes, saying downside risks now "exceed" upside ones for both growth and prices.
At a press conference after the central bank wrapped up its two-day meeting, Ueda also said the BOJ will continue raising interest rates as needed, but he added, "Overseas trade policies pose a downside risk."
Earlier in the day, the BOJ decided to further reduce its government bond purchases beyond April next year, but at a slower pace. Ueda said the bank will review the pace if necessary to avoid unforeseen market turbulence.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
32 minutes ago
Japan Raises Travel Warning for Iran to Highest Level
News from Japan Politics Jun 17, 2025 22:10 (JST) Tokyo, June 17 (Jiji Press)--Japan's Foreign Ministry on Tuesday raised its travel warning for Iran to Level 4, the highest on its alert scale, urging Japanese nationals to leave Iran immediately, amid Israeli attacks on the country. "The situation is becoming increasingly tense," Foreign Minister Takeshi Iwaya told a press conference, adding that the government will do all it can to protect Japanese nationals in Iran. Japan is "considering various options" for the evacuation of nationals, Chief Cabinet Secretary Yoshimasa Hayashi said at a separate press conference. According to government sources, the Foreign Ministry is arranging buses to transport Japanese people wishing to flee Iran and Israel to neighboring countries by land. END [Copyright The Jiji Press, Ltd.] Jiji Press
Kyodo News
an hour ago
- Kyodo News
Japan PM defends global trade order at G7 amid Trump tariff tensions
By Takuya Karube, KYODO NEWS - 4 hours ago - 17:33 | All, World Japanese Prime Minister Shigeru Ishiba on Monday defended the global economic order that has been in place for decades, promoting the lowering of cross-border trade barriers, at a Group of Seven summit in Canada, as many countries reel from U.S. President Donald Trump's tariff war and unilateralism. Trump's transactional approach to diplomacy and his confrontational trade actions have tested the 50-year-old group's ability to tackle global challenges as the leaders of the major industrial democracies gather in a Canadian mountain resort. Canadian Prime Minister Mark Carney, chair of the summit, warned that the world is "more divided and dangerous," underscoring the importance of "cooperation" and "economic prosperity" for it to shape a better future. "We might not agree on absolutely every issue, but where we will cooperate, we will make an enormous difference for our citizens and for the world, and bring the next era of prosperity," he said. But Trump indicated he is not on the same page as his counterparts in the G7, which groups Britain, Canada, France, Germany, Italy, Japan and the United States, as well as the European Union. Trump repeated his complaint about the expulsion of Russia from the group, a decision made in 2014 after Moscow occupied and annexed the autonomous Ukrainian region of Crimea, calling the exclusion a "very big mistake." While speaking alongside Carney before their bilateral meeting, Trump went beyond even the notion of a revived Group of Eight, responding to a reporter's hypothetical question about China's inclusion by saying, "It's not a bad idea." The annual gathering was also overshadowed by the intensifying conflict between Israel and Iran, which prompted Trump to leave early from the venue in the resort of Kananaskis near Calgary and travel back to Washington. "I have to be back as soon as I can," Trump told reporters. Israel last week launched unprecedented strikes on Iran that killed top military commanders and damaged nuclear sites. As Israel and Iran continue to exchange missile attacks, the G7 leaders collectively called for de-escalation in the Middle East, while voicing support for Israel's security and its right to defend itself. In a statement released late Monday, they said Iran is a "principal source of regional instability and terror," and it can "never" have a nuclear weapon. Earlier, Trump also posted a similar message on his social media platform and ended it ominously, saying, "Everyone should immediately evacuate Tehran." On the first day of their two-day discussions, the leaders focused on the world economy and economic security, including strengthening supply chains for critical minerals, as well as regional affairs. Ishiba stressed the need for the G7 to unite and lead the international community in building a "free, fair and rules-based economic order," according to the Japanese government. He also said it is essential to maintain and reinforce the multilateral free trade regime with the World Trade Organization at its core. During a session on regional affairs, the leaders "frankly" discussed the situations in the Middle East and the Indo-Pacific region, as well as Russia's invasion of Ukraine, the government said. Among other issues, it said they shared concern about China's underpinning of Russia's ability to continue its war with Ukraine. G7 is not expected to issue a detailed joint statement at the end of the summit, marking a departure from the group's usual practice, G7 officials have said. Reflecting on the difficulty of reaching a consensus on major global issues following the return of Trump and his "America First" agenda, the G7 leaders plan to release brief "action-oriented" statements instead. Since beginning his second, nonconsecutive term in January, Trump has upended the global economic order by imposing hefty tariffs on imports from almost all countries. The G7 summit is the first major multilateral event attended by Trump during his second term. Carney, Ishiba, German Chancellor Friedrich Merz and British Prime Minister Keir Starmer are all attending for the first time since taking office. Carney has invited some leaders from outside the group, including Australia, India, South Korea and Ukraine, who will join their G7 counterparts on the second day of discussions. On Tuesday, there will be a session dedicated to Ukraine, with its President Volodymyr Zelenskyy expected to call for a united front to halt Russia's war against his country. Related coverage: Japan, U.S. still far from tariff deal after Ishiba-Trump summit China's nuclear arsenal hits 600 warheads, up 100 from year before U.S., China hold high-level trade talks with rare earths in focus
an hour ago
Trump Calls Japan Tough in Tariff Talks
News from Japan Jun 17, 2025 21:16 (JST) Banff, Canada, June 17 (Jiji Press)--U.S. President Donald Trump said Tuesday that Japan is a "tough" counterpart in tariff negotiations but added that "there's a chance" of reaching a deal. Trump was speaking to reporters on his flight to Washington after attending the first day of the two-day Group of Seven summit in Kananaskis, western Canada, on Monday. Trump cut short the summit, citing the need to deal with escalating tensions in the Middle East. On the sidelines of the G-7 summit, Trump and Japanese Prime Minister Shigeru Ishiba held bilateral talks, but failed to conclude the tariff negotiations. The Japanese government had aimed to reach a deal at the Ishiba-Trump meeting, but the two sides were unable to bridge their gaps over issues such as additional U.S. tariffs on auto imports. END [Copyright The Jiji Press, Ltd.] Jiji Press
