Latest news with #Kochi
Daily Mail
2 days ago
- Daily Mail
Air India plane skids off runway and busts three tires on landing at Mumbai
India plane skidded off a runway and burst three of its tires as it came in to land in Mumbai on Monday. The plane, an Airbus A320, suffered damage to the underside of an engine, forcing the runway at Mumbai International Airport to shut down amid heavy rain in the region. Air India flight AI2744, which had flown from the Indian city of Kochi, lost control and veered off the airport's main runway onto an unpaved area before coming to a stop on a taxiway. Photos of the plane showed significant damage to the outermost part of the engine, as well as clumps of wet grass lodged into its wing. A spokesperson for Air India said: 'Flight AI2744, operating from Kochi to Mumbai on 21 July 2025, experienced heavy rain during landing, resulting in a runway excursion after touchdown. 'The aircraft taxied safely to the gate and all passengers and crew members have since disembarked. The aircraft has been grounded for checks. 'The safety of passengers and crew remain our top priority.' Mumbai International Airport said in a statement that its primary runway suffered 'minor damages' during the incident. The airport added that a backup runway has now been 'activated' to allow planes to arrive and depart. Air India is already facing heavy scrutiny following the release of a preliminary report into the deadly crash of one of its Boeing 787 Dreamliners in the Indian city of Ahmedabad last month, killing 260 people.
Reuters
2 days ago
- Business
- Reuters
BOJ sees trade deal as raising chance of meeting inflation goal
KOCHI, Japan, July 23 (Reuters) - Japan's trade deal with the U.S. has reduced uncertainty surrounding the economy, the central bank's deputy governor Shinichi Uchida said, signaling optimism that conditions for resuming interest rate hikes may start to fall in place. Uchida's remark came hours after U.S. President Donald Trump announced a trade deal with Tokyo that cuts tariffs on Japan's mainstay automobile imports and spares Tokyo punishing new levies on some other goods. "It's a very big progress that reduces uncertainty for Japan's economy," Uchida said on Wednesday, adding that the BOJ will incorporate the deal in its quarterly growth and price projections due at the next policy meeting on July 30-31. "Given the receding uncertainty, by definition it can be said that the likelihood of Japan durably achieving 2% inflation has heightened," Uchida told a news conference. BOJ policymakers have repeatedly said they need to be more convinced that inflation will sustainably hit its 2% target before raising interest rates further. While there was still some uncertainty on how the tariffs could affect domestic and overseas economies, the BOJ was looking at both upside and downside risks to economic activity and prices, Uchida said. "The BOJ needs to adjust monetary policy to best balance upside and downside risks from the perspective of maintaining economic and price stability," Uchida said in an earlier speech to business leaders in the southern west city of Kochi. He reiterated the BOJ's resolve to continue raising interest rates if the economy and prices move in line with its forecasts. Sources have told Reuters the BOJ's next quarterly report will warn of uncertainty over the impact of U.S. tariffs, but may offer a less gloomy view on the near-term hit to the economy than three months ago when market volatility was at its peak. Uchida said the trade deal would hugely reduce uncertainty for companies and, coupled with intensifying labour shortages, prod them to continue to hike wages. The BOJ expects underlying inflation, or price rises driven by strength in domestic demand, to reach its 2% target around the latter half of fiscal 2026 through 2027, he added. While media reports that Prime Minister Shigeru Ishiba may step down could add to political uncertainty, receding worries about a U.S.-Japan trade deal led some analysts to predict the chance of another rate hike by the end of this year. "The trade deal with the U.S. announced today removes a key downside risk to Japan's economy," said Marcel Thieliant, head of Asia-Pacific at Capital Economics. "And while the potential resignation of Ishiba creates political risks, our conviction that the Bank of Japan will resume its tightening cycle before the end of the year has risen," Thieliant said. A Reuters poll showed a majority of economists expect the BOJ to raise its key interest rate again by year-end, though most expect the bank to stand pat at this month's meeting. The BOJ exited a decade-long, radical stimulus programme last year and raised short-term interest rates to 0.5% in January on the view that Japan was on the cusp of sustainably hitting its 2% inflation target. While the central bank has signalled its readiness to raise rates further, concerns about the economic fallout from U.S. tariffs forced it to cut its growth forecasts in May. Further muddling the rate outlook, core consumer inflation has stayed above the BOJ's target for well over three years with steadily rising food costs hurting households. Uchida said inflation was running hotter than expected as rises in food costs were spreading beyond the price of rice. "This suggests that, at least with regards to food prices, firms' price-setting behaviour has changed significantly compared to the past," Uchida said, adding that rising food costs may have a relatively strong influence on households' inflation expectations. The BOJ will focus on how such price pressures will affect underlying inflation in setting monetary policy, he said.
Reuters
2 days ago
- Business
- Reuters
BOJ warns of risks to economy, says rate-hike path on course
KOCHI, Japan, July 23 (Reuters) - Bank of Japan Deputy Governor Shinichi Uchida said risks to economic activity and prices were skewed to the downside due to "extremely high" uncertainty over trade policy, even as he reiterated the central bank's readiness to proceed with further interest rate hikes. Uchida's remarks came hours after U.S. President Donald Trump announced a trade deal with Tokyo, a move that will likely ease some concerns over Japan's economic outlook. "Uncertainties surrounding each country's trade policy, and the effect on domestic and overseas economies, remain extremely high. As such, risks to economic activity and prices are skewed to the downside," Uchida said on Wednesday in a speech to business leaders in Kochi, southwestern Japan. "The BOJ needs to adjust monetary policy to best balance upside and downside risks from the perspective of maintaining economic and price stability," he added. The remarks from Uchida, who is known to deliver strong hints on the policy outlook, come ahead of the BOJ's July 30-31 rate-setting meeting when the board will issue a quarterly report with new growth and inflation projections. Sources have told Reuters the BOJ's report will warn of uncertainty over the impact of U.S. tariffs, but may offer a less gloomy view on the near-term hit to Japan's economy than three months ago when market volatility was at its peak. If some progress is made in Trump's trade negotiations with other countries, Japanese companies will likely enjoy strong profits and continue hiking wages, Uchida said. "But if the negative impact of tariff policies turns out to be greater or more prolonged than expected, the wage-hike trend seen in the past few years could weaken," he said. While warning of risks to economic growth, Uchida said inflation was running hotter than initially expected as rises in food costs were spreading beyond the price of rice. "This suggests that, at least with regards to food prices, firms' price-setting behaviour has changed significantly compared to the past," Uchida said, adding that rising food costs may have a relatively strong influence on households' inflation expectations. The BOJ expects underlying inflation, or price rises driven by strength in domestic demand, to reach its 2% target around the latter half of fiscal 2026 through 2027, he said. While media reports that Prime Minister Shigeru Ishiba may step down could add to political uncertainty, receding worries about a U.S.-Japan trade deal led some analysts to predict the chance of another rate hike by the end of this year. "The trade deal with the U.S. announced today removes a key downside risk to Japan's economy," said Marcel Thieliant, head of Asia-Pacific at Capital Economics. "And while the potential resignation of Ishiba creates political risks, our conviction that the Bank of Japan will resume its tightening cycle before the end of the year has risen," Thieliant said. The BOJ exited a decade-long, radical stimulus programme last year and raised short-term interest rates to 0.5% in January on the view that Japan was on the cusp of sustainably hitting its 2% inflation target. While the central bank has signalled its readiness to raise rates further, concerns about the economic fallout from higher U.S. tariffs forced it to cut its growth forecasts in May and complicated decisions around the timing of the next rate increase. Key to the BOJ's rate-hike timing would be whether firms will continue to hike wages next year despite U.S. tariffs, and help underpin economic growth, analysts say. A Reuters poll showed a majority of economists expect the BOJ to raise its key interest rate again by year-end, though most expect the bank to stand pat at this month's meeting.
CNA
2 days ago
- Business
- CNA
BOJ warns of risks to economy, says rate-hike path on course
KOCHI, Japan :Bank of Japan Deputy Governor Shinichi Uchida said risks to economic activity and prices were skewed to the downside due to "extremely high" uncertainty over trade policy, even as he reiterated the central bank's readiness to proceed with further interest rate hikes. Uchida's remarks came hours after U.S. President Donald Trump announced a trade deal with Tokyo, a move that will likely ease some concerns over Japan's economic outlook. "Uncertainties surrounding each country's trade policy, and the effect on domestic and overseas economies, remain extremely high. As such, risks to economic activity and prices are skewed to the downside," Uchida said on Wednesday in a speech to business leaders in Kochi, southwestern Japan. "The BOJ needs to adjust monetary policy to best balance upside and downside risks from the perspective of maintaining economic and price stability," he added. The remarks from Uchida, who is known to deliver strong hints on the policy outlook, come ahead of the BOJ's July 30-31 rate-setting meeting when the board will issue a quarterly report with new growth and inflation projections. Sources have told Reuters the BOJ's report will warn of uncertainty over the impact of U.S. tariffs, but may offer a less gloomy view on the near-term hit to Japan's economy than three months ago when market volatility was at its peak. If some progress is made in Trump's trade negotiations with other countries, Japanese companies will likely enjoy strong profits and continue hiking wages, Uchida said. "But if the negative impact of tariff policies turns out to be greater or more prolonged than expected, the wage-hike trend seen in the past few years could weaken," he said. While warning of risks to economic growth, Uchida said inflation was running hotter than initially expected as rises in food costs were spreading beyond the price of rice. "This suggests that, at least with regards to food prices, firms' price-setting behaviour has changed significantly compared to the past," Uchida said, adding that rising food costs may have a relatively strong influence on households' inflation expectations. The BOJ expects underlying inflation, or price rises driven by strength in domestic demand, to reach its 2 per cent target around the latter half of fiscal 2026 through 2027, he said. While media reports that Prime Minister Shigeru Ishiba may step down could add to political uncertainty, receding worries about a U.S.-Japan trade deal led some analysts to predict the chance of another rate hike by the end of this year. "The trade deal with the U.S. announced today removes a key downside risk to Japan's economy," said Marcel Thieliant, head of Asia-Pacific at Capital Economics. "And while the potential resignation of Ishiba creates political risks, our conviction that the Bank of Japan will resume its tightening cycle before the end of the year has risen," Thieliant said. The BOJ exited a decade-long, radical stimulus programme last year and raised short-term interest rates to 0.5 per cent in January on the view that Japan was on the cusp of sustainably hitting its 2 per cent inflation target. While the central bank has signalled its readiness to raise rates further, concerns about the economic fallout from higher U.S. tariffs forced it to cut its growth forecasts in May and complicated decisions around the timing of the next rate increase. Key to the BOJ's rate-hike timing would be whether firms will continue to hike wages next year despite U.S. tariffs, and help underpin economic growth, analysts say.
CNA
2 days ago
- Business
- CNA
BOJ paints gloomy view on economy, signalling go-slow on rate hikes
KOCHI, Japan :Bank of Japan Deputy Governor Shinichi Uchida said risks to economic activity and prices were skewed to the downside due to "extremely high" uncertainty over trade policy, signalling that the central bank was in no rush to resume interest rate hikes. The remark came hours after U.S. President Donald Trump announced a trade deal with Japan, a move that will likely reduce some of the trepidation over the economic outlook. Uchida reiterated the central bank's readiness to stay on course for further rate hikes, saying it will continue to hike borrowing costs if the economy keeps improving. But he said the BOJ will scrutinise "without any preconceptions" whether its projections will materialise due to a lack of clarity on how U.S. trade policy unfolds, and affects the global economy and markets. "Uncertainties surrounding each country's trade policy, and the effect on domestic and overseas economies, remain extremely high. As such, risks to economic activity and prices are skewed to the downside," Uchida said on Wednesday in a speech to business leaders in Kochi, southwestern Japan. "The BOJ needs to adjust monetary policy to best balance upside and downside risks from the perspective of maintaining economic and price stability," he added. The remarks from Uchida, who is known to deliver strong hints on the policy outlook, come ahead of the BOJ's July 30-31 rate-setting meeting when the board will issue a quarterly report with new growth and inflation projections. Sources have told Reuters the BOJ's report will warn of uncertainty over the impact of U.S. tariffs, but may offer a less gloomy view on the near-term hit to Japan's economy than three months ago when market volatility was at its peak. If some progress is made in Trump's trade negotiations with other countries, Japanese companies will likely enjoy strong profits and continue hiking wages, Uchida said. "But if the negative impact of tariff policies turns out to be greater or more prolonged than expected, the wage-hike trend seen in the past few years could weaken," he said. While warning of risks to economic growth, Uchida said inflation was running hotter than initially expected as rises in food costs were spreading beyond the price of rice. "This suggests that, at least with regards to food prices, firms' price-setting behaviour has changed significantly compared to the past," he said, adding that rising food costs may have a relatively strong influence on households' inflation expectations. The BOJ expects underlying inflation, or price rises driven by strength in domestic demand, to reach its 2 per cent target around the latter half of fiscal 2026 through 2027, he said. The BOJ exited a decade-long, radical stimulus programme last year and raised short-term interest rates to 0.5 per cent in January on the view that Japan was on the cusp of sustainably hitting its 2 per cent inflation target. While the central bank has signalled its readiness to raise rates further, the economic impact of higher U.S. tariffs forced it to cut its growth forecasts in May and complicated decisions around the timing of the next rate increase. Key to the BOJ's rate-hike timing would be whether firms will continue to hike wages next year despite headwinds from U.S. tariffs, and help underpin economic growth, analysts say.
