BoJ Deputy Governor Highlights Dual Impact of US Tariffs

Bank of Japan (BoJ) Deputy Governor Shinichi Uchida addressed the potential dual effects of United States tariffs on Japan's economy during a recent statement. He pointed out that while tariffs could lead to some price increases, they might also slow down economic growth, presenting a complex scenario for Japan's financial stability.

Inflation and Wage Growth Under Scrutiny

Uchida also touched on the topic of inflation expectations, suggesting they might remain flat in the short term. However, he remained optimistic about wage growth, attributing it to businesses grappling with labor shortages. This dynamic could influence the BoJ's decisions on adjusting interest rates, depending on the economy's trajectory.

Gradual Recovery Expected

Looking ahead, the deputy governor forecasted a period of slow growth for Japan's economy, with a gradual recovery anticipated as global conditions improve. This outlook aligns with discussions held during the BoJ's latest meeting, indicating a cautious yet hopeful perspective on Japan's economic future.