Bank of Japan Cautious on Global Economic Outlook

The Bank of Japan (BoJ) has recently unveiled the minutes from its June policy meeting, revealing a cautious stance among board members regarding the global economic outlook. Despite expectations of inflation easing in the latter part of 2025, the members expressed concerns over the high levels of uncertainty that loom over the economic horizon.

Debate on Impact of Tariffs and Financial Conditions

Amidst signs of a moderate recovery, the board engaged in discussions about the potential repercussions of tariffs on corporate profits and consumer sentiment. Nonetheless, there was a consensus that financial conditions remain accommodative, advocating for market forces to shape long-term interest rates.

Economic Growth Projections

"Japan's economic growth is likely to moderate, as trade and other policies in each jurisdiction lead to a slowdown in overseas economies and to a decline in domestic corporate profits and other factors, although factors such as accommodative financial conditions are expected to provide support," the members stated, highlighting the delicate balance between challenges and supportive mechanisms in the economy.