UEDA’s Boj says that US definitions are likely to exert down pressure on Japan, global economies
The governor of the Bank of Japan, Kazu Oda, said early Friday that US definitions are likely to exert pressure on Japan and global economies.
Main quotes
US definitions are likely to be put down downward pressure on Japan and global economies.
It is difficult now how the customs tariff will affect the movements of Japan.
You will closely monitor the impact of customs tariffs on Japan, economic developments and foreign prices in a monetary policy.
We will examine data, including listening sessions, available at the time of each political meeting to measure the impact of the American tariff on the Japanese economy and prices.
We will directly direct monetary policy from the point of view of achieving the goal of inflation by 2 % sustainable.
When the external environment changes sharply, our growth and price expectations will change, so monetary policy will be directed according to this in an appropriate way.
Market reaction
At the time of the press, the US dollar pair/JPY rises 0.17 % a day for trade at 146.33.
Common questions between the Bank of Japan
Japan Bank is the Japanese Central Bank, which sets the monetary policy in the country. Its mandate is to issue banknotes, currency implementation and monetary control to ensure price stability, which means the purpose of inflation is about 2 %.
The Bank of Japan began a very monetary policy in 2013 to stimulate the economy and enlarge fuel in a low -inflation environment. The bank’s policy depends on quantitative and qualitative mitigation, or print notes to buy assets such as government bonds or companies to provide liquidity. In 2016, the bank doubled its strategy and increased the policy of alleviating it by providing negative interest rates first, and then directly controls the return of its government bonds for 10 years. In March 2024, BOJ raised interest rates, and effectively retreated from the high -drawing monetary policy position.
The massive incentive of the bank caused a decrease in its decrease against its main peers. This process was exacerbated in 2022 and 2023 due to the increased difference of policy between the Bank of Japan and other major central banks, which chose to increase interest rates sharply to fight high inflation levels. BOJ policy has expanded teams with other currencies, which pulled the yen value. This trend was partially reflected in 2024, when BOJ decided to give up the position of the superior policy.
The weakest yen and the increase in global energy prices increased Japanese inflation, which exceeded the BOJ goal by 2 %. The possibility of high salaries in the country – a major element in inflation in feeding – also contributed to this step.
