Uncertainty from trade policies heightened sharply

Bank of Japan (BOJ) Governor Kazuo was talking to a press conference on Thursday, explaining the bank's decision to maintain interest rate at 0.50% for a second consecutive meeting.

Additional quotes

• The uncertainty from trading policies has increased dramatically.
• The report combined based on the assumption that prevents interference with the Global Chain chain.
• Japan's economy is cured moderately, even though some weak motions are visible.
• Japan's economic growth is likely to be moderate.
• It is necessary to pay attention to the financial, FX market, Japan's economic impact, prices.
• BoJ hopes to keep rates in rising if the economy, prices moves the line of hopes.
• To judge if the perspective is achieved without preconception.
• Trade policies are announced in each region that are likely to push economies.
• Expect the underlying inflation to cool down due to tariffs, slow global growth.
• Economic, price projections can change dramatically depending on how countries deal with US tariffs.
• The virtuous cycle of wages and prices will continue due to continued lack of labor.
• Outlook is not as specific as before.
• The timing of the underlying inflation to achieve a 2% goal is relatively delayed.
• It is difficult to judge if the possibility of achieving the underlying purpose of inflation, will be flexible to the policy response.
• If a major change in tariff policy, it will affect the view of the financial policy.
• The economy has been around the track to this day.
• The financial policy operations made by controlling short -term rates
• Our factor of projections in some development of tariff negotiations.
• The mid-term JGB purchase review will suggest plans after April 2026.
• 'Not simple' in achieving the underlying target of inflation as usual.
• Fair value of the possibilities of revising our views based on data.
• Board members with me generally assume that reward tariffs will not be either intense.
• Expect US tariffs above the base 10% imposed.
• There is a high probability of changing our perspective depending on different assumptions and data because the insight is low.
• There are some degree of possibilities of overshooting prices our central forecast.
• It is difficult to make a decision today in addressing situations that resemble stagflation.
• It is difficult to say when the level of uncertainty in tariffs will decrease.
• The uncertainty around the impact of the tariff on the economy remains high even after the tariffs are finaliszd.
• We don't have to wait until the winter time bonuses, talking to spring wage will decide anything.
• It is still considered in ETFs.
• The US said it wanted to finish tariff negotiations for 90 days, that was a marker.
• Although US tariffs are decided, the effect is difficult to read.
• The timing of the next rate of increase can be changed a lot depending on the impact of economic tariffs.
• Tariffs can negatively affect corporate income, and affect winter bonuses and wage negotiations next year.
• But that doesn't mean we have to wait for everyone to be clear to make a policy decision.
• The timing of the trend inflation does not have to be in contact with the timing of the rate increase.

Market reaction

USD/JPY Stays strong bid following these comments. The pair last saw the trade of 0.98% higher during the day near 144.30.