Boj warns us of an induction uncertainty that may harm confidence and economy

By playing Kihara

Tokyo (Reuters) -Policy in Japan on Thursday warned of increased uncertainty about the repercussions of US President Donald Trump’s tariff, saying they might cause family confidence and harm the fragile economy in the country.

These notes came when Japan started bilateral trade talks with the United States in Washington, which the Great negotiator Riozi Akazawa said it does not include the issue of thorny exchange rates.

Speaking in Parliament, the governor of Boj Kazuo Ueda said that the Trump tariff may affect the Japanese economy through various channels such as commercial activity and the volatility of the financial market.

When BOJ raised interest rates in January, the American economy was in good condition and the financial markets were stable.

“Recently, the uncertainty surrounding American policy, especially those winding, has increased sharply,” he told parliament.

“We will examine the developments and their impact on the Japanese economy without any prior visualization of every policy meeting.”

The head of the Central Bank said that with the decrease in real interest rates, BOJ will continue to raise interest rates if the economy and prices are in line with his expectations.

“But we must be vigilant to the truth of the uncertainty surrounding the commercial policy of each country that is increasing.”

While a warning of the strike from the US tariff, UEDA said a steady rise in rice and other food prices can lead to broad price gains that may increase the long -term inflation expectations.

In a speech on Thursday, Boj Junko Nakagawa Board of Directors said that uncertainty about the US tariff policy may harm the economy not only through low exports, but excessive market fluctuations.

Nakagawa also warned of the risk of overcoming local inflation, saying that companies can raise prices and wages more than expected to transfer the increasing costs, including employment.

She said that the increasing cost of living and uncertainty about Trump’s tariff may hurt feelings and home consumption.

The notes highlight the challenge facing BOJ policy makers in collecting separation predictions and separation inflation in their next meeting on April 30 1.

Sources told Reuters that BOJ is scheduled to reduce economic growth forecasts at this policy meeting, as Trump’s tariff increases risks to fragile and export recovery.

The central bank came out of the huge stimulus program that lasted for ten years last year and raised interest rates to 0.5 % in January, Japan was on the threshold of achieving the goal of inflation by 2 %.

(Participated in the coverage of Lika Kihara; additional reports from Macco Yamazaki; edited by Christopher Kushing, Shri Navarinam and Sonali Paul)