TOKYO, – Bank of Japan Governor Kazuo Ueda said on Wednesday the central bank will carefully analyze how US tariffs could affect the economy in making monetary policy decisions.
“Domestic and overseas economic uncertainties have heightened due to US auto and reciprocal tariffs,” Ueda told parliament.
“We will continue to carefully analyze how the tariffs could affect Japan’s economy and prices through various channels.”
The BOJ exited a radical stimulus programme last year and raised interest rates to 0.5 percent in January on the view Japan was on the cusp of sustainably achieving its 2 percent inflation target.
Trump’s decision to impose sweeping tariffs worldwide, including on Japan, has complicated the BOJ’s plan to continue raising interest rates from still-low levels.
Ueda said the BOJ’s past decisions to raise interest rates were made with a focus on underlying inflation, which has gradually accelerated toward 2 percent.
