Latest news with #Ueda
3 days ago
- Business
Uncertainties over Trump Tariffs Extremely Strong: BOJ Ueda
News from Japan Economy Jun 3, 2025 17:52 (JST) Tokyo, June 3 (Jiji Press)--Bank of Japan Governor Kazuo Ueda said Tuesday that uncertainties over high tariffs imposed by the administration of U.S. President Donald Trump remain extremely strong. Business and household sentiments "have deteriorated recently," Ueda said at an event hosted by the Research Institute of Japan, a Jiji Press affiliate, in Tokyo. On the central bank's monetary policy moves going forward, he said that "nascent developments" toward achieving the BOJ's 2 pct price target "have steadily gained momentum." Ueda also said that the BOJ will continue to raise interest rates if the Japanese economy and prices move in line with the central bank's outlook. END [Copyright The Jiji Press, Ltd.] Jiji Press
Kyodo News
3 days ago
- Business
- Kyodo News
BOJ not to push rate hikes amid U.S. tariff uncertainty: Ueda
KYODO NEWS - 4 hours 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. Related coverage: Trump's steel tariff hike not raised in Japan-U.S. talks: negotiator Trump lauds Nippon Steel as "great partner" for U.S. Steel FOCUS: Tokyo metro election key test for PM Ishiba's long-term prospects
Kyodo News
3 days ago
- Business
- Kyodo News
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. Related coverage: Trump's steel tariff hike not raised in Japan-U.S. talks: negotiator Trump lauds Nippon Steel as "great partner" for U.S. Steel FOCUS: Tokyo metro election key test for PM Ishiba's long-term prospects
Yomiuri Shimbun
3 days ago
- Business
- Yomiuri Shimbun
BOJ's Ueda Signals Readiness to Raise Rates If Growth Re-Accelerates
Reuters file photo Bank of Japan Governor Kazuo Ueda attends a press conference after a BOJ policy meeting in Tokyo, Japan, May 1, 2025. TOKYO, June 3 (Reuters) – 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 also signaled the central bank will continue to taper its huge bond buying even after an existing plan running through March expires, underscoring its resolve to stay on course for a slow but steady withdrawal of ultra-easy policy. The hit from higher U.S. tariffs on Japan's economy could first come from a drop in exports, which could hurt corporate profits and consumer sentiment, Ueda said. 'U.S. tariffs could weigh somewhat on Japanese companies' winter bonus payments and next year's wage talks with unions,' Ueda told parliament. 'Wage growth may slow somewhat. But we expect economic and wage growth to re-accelerate' and keep consumption on a moderate uptrend, he added. The BOJ ended a massive stimulus last year and in January raised short-term interest rates to 0.5% on the view Japan was on the cusp of durably hitting its 2% inflation target. While the central bank has signaled a readiness to raise rates further, the economic repercussions from higher U.S. tariffs forced it to cut its growth forecasts in May. Stubbornly high food prices, blamed largely on rising import costs and soaring rice prices, have also complicated the BOJ's rate decisions by simultaneously hurting consumption and keeping headline inflation well above its target. The BOJ is keeping interest rates low even as headline inflation hit 4.6% in April – well above its 2% target – as it expects the rise in food prices to slow, Ueda said. Underlying inflation – or price rises driven by domestic demand and higher wages – remains short of 2%, but will likely re-accelerate after a period of stagnation, Ueda said. 'If we're convinced our forecast will materialize, we will adjust the degree of monetary support by raising interest rates,' Ueda said, noting that uncertainty over the outlook was 'extremely high.' A Reuters poll, taken on May 7-13, showed most economists expect the BOJ to hold rates steady through September with a small majority forecasting a hike by year-end. At its next policy meeting on June 16-17, the BOJ will conduct a review of its existing bond-taper plan and lay out a new program for April 2026 onward. The plan is drawing market attention as concern over Japan's worsening finances and dwindling demand from domestic investors caused a spike in super-long government bond yields last month. The BOJ held meetings with bond market participants on May 20-21 to seek their views on the desirable taper plan, which will be taken into account at the June rate review. 'At the meeting, calls for the BOJ to make amendments to the existing plan were limited,' Ueda said, suggesting the review will lead to no major tweak to the existing taper program. 'As for our plan beyond April 2026, many opinions called on the need for the BOJ to continue tapering, while balancing the need to do so flexibility and predictably,' he said. Minutes of the meeting, released on Monday, showed the BOJ received a sizeable number of requests to maintain or slightly slow the pace of tapering from fiscal year 2026 onward. While the participants diverged on how much the BOJ should taper beyond April 2026, several called for reducing its monthly purchases to around 1 trillion yen to 2 trillion yen ($7 billion-$14 billion) by the end of the new taper program, the minutes showed.
Yahoo
3 days ago
- Business
- Yahoo
BOJ's Ueda signals readiness to raise rates if growth re-accelerates
By Leika Kihara and Makiko Yamazaki TOKYO (Reuters) -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 also signaled the central bank will continue to taper its huge bond buying even after an existing plan running through March expires, underscoring its resolve to stay on course for a slow but steady withdrawal of ultra-easy policy. The hit from higher U.S. tariffs on Japan's economy could first come from a drop in exports, which could hurt corporate profits and consumer sentiment, Ueda said. "U.S. tariffs could weigh somewhat on Japanese companies' winter bonus payments and next year's wage talks with unions," Ueda told parliament. "Wage growth may slow somewhat. But we expect economic and wage growth to re-accelerate" and keep consumption on a moderate uptrend, he added. The BOJ ended a massive stimulus last year and in January raised short-term interest rates to 0.5% on the view Japan was on the cusp of durably hitting its 2% inflation target. While the central bank has signalled a readiness to raise rates further, the economic repercussions from higher U.S. tariffs forced it to cut its growth forecasts in May. Stubbornly high food prices, blamed largely on rising import costs and soaring rice prices, have also complicated the BOJ's rate decisions by simultaneously hurting consumption and keeping headline inflation well above its target. The BOJ is keeping interest rates low even as headline inflation hit 4.6% in April - well above its 2% target - as it expects the rise in food prices to slow, Ueda said. Underlying inflation - or price rises driven by domestic demand and higher wages - remains short of 2%, but will likely re-accelerate after a period of stagnation, Ueda said. "If we're convinced our forecast will materialise, we will adjust the degree of monetary support by raising interest rates," Ueda said, noting that uncertainty over the outlook was "extremely high". A Reuters poll, taken on May 7-13, showed most economists expect the BOJ to hold rates steady through September with a small majority forecasting a hike by year-end. At its next policy meeting on June 16-17, the BOJ will conduct a review of its existing bond-taper plan and lay out a new programme for April 2026 onward. The plan is drawing market attention as concern over Japan's worsening finances and dwindling demand from domestic investors caused a spike in super-long government bond yields last month. The BOJ held meetings with bond market participants on May 20-21 to seek their views on the desirable taper plan, which will be taken into account at the June rate review. "At the meeting, calls for the BOJ to make amendments to the existing plan were limited," Ueda said, suggesting the review will lead to no major tweak to the existing taper programme. "As for our plan beyond April 2026, many opinions called on the need for the BOJ to continue tapering, while balancing the need to do so flexibility and predictably," he said. Minutes of the meeting, released on Monday, showed the BOJ received a sizeable number of requests to maintain or slightly slow the pace of tapering from fiscal year 2026 onward. While the participants diverged on how much the BOJ should taper beyond April 2026, several called for reducing its monthly purchases to around 1 trillion yen to 2 trillion yen ($7 billion-$14 billion) by the end of the new taper programme, the minutes showed. ($1 = 143.0600 yen) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
