BOJ not to push rate hikes amid U.S. tariff uncertainty: Ueda
KYODO NEWS - 1 hour ago - 13:30 | All, Japan
Bank of Japan chief Kazuo Ueda said Tuesday the central bank will not push hard to raise its policy rate unless economic and price conditions are projected to improve, noting their "extremely high" uncertainty due to hefty U.S. tariffs.
Ueda told a parliamentary session that the BOJ will not hike rates just to make room for future monetary easing, while reiterating its policy of further lifting rates if the economy and prices move in line with its expectations.
His remarks came after the central bank revised down its economic growth and price projections for the current fiscal year and maintained its short-term policy interest rate at around 0.5 percent in May for the second consecutive meeting.
Trade frictions triggered by U.S. President Donald Trump's steep tariffs could cause "the global economy to slow down and squeeze profits of domestic companies," Ueda said, signaling a cautious stance about deciding the timing of future rate hikes.
As part of efforts to normalize monetary policy following a decade of unorthodox easing, the BOJ has raised its key interest rate three times since March last year, when it implemented its first hike in 17 years.
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