Latest news with #BankOfJapan
Free Malaysia Today
an hour ago
- Business
- Free Malaysia Today
BOJ's Ueda says economy can withstand hit from US tariffs
The Bank of Japan said there is no change in its view that consumer inflation will gradually rise toward its 2% target. (Reuters pic) TOKYO : Bank of Japan governor Kazuo Ueda said today the country's economy can withstand the hit from US tariffs and sustain a cycle of rising inflation accompanied by wage growth, signalling the bank's readiness to raise interest rates further. 'Uncertainty over US trade policy and the range of tariffs imposed by President Donald Trump's administration could hurt Japan's exports, prod firms to delay capital expenditure plans, and discourage them from raising wages,' Ueda said. 'While an agreement between the US and China to scale back reciprocal tariff rates is perceived by markets as a positive development, uncertainty over the outlook remains high,' he said. 'Recent tariff policies will exert downward pressure on Japan's economy through several different channels,' Ueda said in a speech. 'That said, we expect that Japan's economy can withstand such downward pressure, as historically high corporate profits serve as a buffer,' he said. He also said Japan's tight labour market means the economy will likely sustain a trend in which wages and prices rise in tandem – a key prerequisite for further rate hikes. 'While underlying consumer inflation will stagnate temporarily, there is no change to the BOJ's view that it will gradually rise toward its 2% target,' Ueda said. 'Although developments in trade policies since early spring have had a larger impact on Japan's economy than we had expected, progress towards achieving our price target continues to gain momentum,' he added.
CNA
13 hours ago
- Business
- CNA
BOJ's Ueda signals readiness to raise rates if growth re-accelerates
TOKYO :Bank of Japan Governor Kazuo Ueda said on Tuesday the central bank will raise interest rates once it is convinced enough that economic and price growth will re-accelerate after a period of stagnation. Ueda said the recent increase in food prices will likely slow as it is driven by one-off factors such as rising raw material costs. By contrast, underlying inflation - or price rises driven by domestic demand and higher wages - will likely re-accelerate after a period of stagnation, Ueda said. Given uncertainty over the price outlook and the fallout from U.S. trade policy, the BOJ must avoid having any preset idea on the future course of monetary policy, he said. "We'll continue to raise interest rates depending on improvement in economic and price situations if the economy and prices move in line with our forecasts," Ueda told parliament. "But it's important to closely monitor domestic and overseas economic, price and financial market developments and judge without any preset ideas, as uncertainties over trade policies of each country remain extremely high," he said.
Reuters
14 hours ago
- Business
- Reuters
BOJ governor says no preset ideas on monetary policy judgement
TOKYO, June 3 (Reuters) - Bank of Japan Governor Kazuo Ueda on Tuesday said it is important to make policy judgements without any preset ideas as uncertainty over global tariff policies remain extremely high. "We'll continue to raise interest rates depending on improvement in economic and price situations if the economy and prices move in line with our forecasts," Ueda told parliament. "But it's important to closely monitor domestic and overseas economic, price and financial markets developments and judge without any preset ideas, as uncertainties over trade policies of each country remain extremely high," he said.
CNA
14 hours ago
- Business
- CNA
BOJ governor says no preset ideas on monetary policy judgement
TOKYO :Bank of Japan Governor Kazuo Ueda on Tuesday said it is important to make policy judgements without any preset ideas as uncertainty over global tariff policies remain extremely high. "We'll continue to raise interest rates depending on improvement in economic and price situations if the economy and prices move in line with our forecasts," Ueda told parliament. "But it's important to closely monitor domestic and overseas economic, price and financial markets developments and judge without any preset ideas, as uncertainties over trade policies of each country remain extremely high," he said.
Reuters
2 days ago
- Business
- Reuters
BOJ sets aside maximum provisions for bond transactions, Nikkei reports
June 2 (Reuters) - The Bank of Japan has set aside the maximum provision for losses on bond transactions, the Nikkei reported on Monday. For fiscal 2024, BOJ raised the level of provisions to 100% for the first time, signaling that the central bank expects higher interest payments to financial institutions to impact its capital base, the newspaper reported. Japan's central bank kept short-term interest rates steady at 0.5% in its May meeting, with pressures mounting to keep hiking borrowing costs. BOJ did not immediately respond to a Reuters request for comment.
