During his speech in front of Parliament early Wednesday morning, Bank of Japan Governor Kazuo Ueda stated that the central bank will continue to implement monetary policy appropriately to achieve the inflation target of 2%.
Ueda's statements today included the following:
The Bank of Japan will monitor the impact of U.S. tariffs and immigration policies on the economy. We are paying very close attention to the policies of the new U.S. administration. I see the impact of U.S. tariff and immigration policies as inflationary for the U.S. economy. The pace of monetary adjustment should depend on economic data. The interest rate increases implemented by the Bank of Japan so far have been appropriate. The Bank of Japan is aware that rising inflation, including inflation in fresh food prices, has a negative impact on households. There may be risks that rising fresh food prices may not be temporary and could affect people's sentiment.
