Bank of Japan (BoJ) Deputy Governor Shinichi Uchida said Tuesday that United States tariffs could affect Japan's prices in both directions. He explained that while some price increases may occur, economic growth might also slow.
The deputy governor also noted that inflation expectations may flatten for a while, but wages should keep rising as firms deal with labor shortages. He said the BoJ could adjust interest rates upward if the economy follows its expected path.
Uchida said Japan's economy is expected to grow slowly for now, then recover gradually as global conditions improve, aligning with what was said at the bank's latest meeting.
