Overview

• Ueda asserted that Japan’s economy can withstand downward pressure from recent U.S. tariff measures thanks to historically high corporate profits serving as a buffer
• He warned that uncertainty over U.S. trade policy could dent exports, prompt firms to delay capital spending and discourage wage increases
• The central bank expects underlying consumer inflation to temporarily stagnate before gradually climbing toward its 2% target
• Japan’s tight labour market is projected to sustain a cycle of concurrent wage and price increases, a key prerequisite for future rate hikes
• Ueda signalled the BOJ’s readiness to lift interest rates again if inflationary pressures remain sustained