MNI BRIEF: Prices Adversely Affecting Consumption - Uchida

Bank of Japan Deputy Governor Shinichi Uchida said Monday that the central bank recognises high prices, driven by rising import and rice costs, are weighing on private consumption.

Speaking to lawmakers, Uchida said it remains appropriate for the BOJ to maintain its accommodative policy stance to support economic activity. 

However, he noted that the Bank will consider raising the policy interest rate to adjust the degree of monetary easing, should its economic forecasts materialise.

On the outlook for inflation, Uchida warned that the U.S. tariffs will likely slow Japan’s economy and exert downward pressure on prices, although a moderate global recovery should support a rebound later.

He added that the BOJ will carefully assess whether the economy and prices evolve in line with its projections, without assuming any fixed preconditions.