U.S. Tariffs: A Global Economic Challenge

Bank of Japan Governor Kazuo Ueda highlights increased global and domestic economic uncertainty due to U.S. tariffs. He warns of potential downward pressure on economies and emphasizes the BOJ's commitment to sustainable monetary policy to achieve a 2% inflation target, with careful monitoring of economic conditions.

Bank of Japan Governor Kazuo Ueda has raised the alarm over heightened global and domestic economic uncertainty driven by U.S. tariff policy. Speaking in parliament on Monday, he expressed concerns about the economic implications.

Ueda warned that U.S. tariffs are expected to exert downward pressure on both global and Japanese economies through various channels, stressing the interconnectedness of economic systems.

The central bank governor affirmed that the Bank of Japan will guide its monetary policy with the aim of sustainably achieving its 2% inflation target. This will involve a careful scrutiny of economic, price, and financial developments without preconceived notions, ensuring flexibility and responsiveness to changing economic landscapes.

(With inputs from agencies.)