BoJ's Nakagawa says US tariff policy, overseas economic and market developments among risks to Japan's economic outlook, uncertainty over US tariffs could affect household and corporate sentiment, Japan's economy and prices

Says:

• Excessive market volatility may put downward pressure on Japan's economy.


• Companies still in process of passing on raw material costs.


• Considering current real interest rate levels, future monetary policy conduct will depend on developments in economic activity and prices as well as financial conditions.


• There is risk wage pressure may strengthen further and be translated into sales prices.


• Worsening consumer sentiment could disrupt cycle of rising income and expenditure.


• If outlook for economic activity and prices is realised, BOJ will continue to raise interest rates and adjust degree of monetary accommodation.


• Consumption is recovering moderately as a trend, but rising living costs and uncertainty over US tariffs could worsen consumer sentiment.

17 Apr 2025 - 02:34- MetalsData- Source: Newswires