Key Facts
• July 23: BOJ Deputy Governor Shinichi Uchida held a press conference in Kochi.
• Japan-U.S. tariff negotiations concluded, deemed a “significant step forward.”
• Reduced tariff-related uncertainty benefits Japanese economy and businesses.
• May Outlook Report assumed progress in international negotiations; no major structural changes.
• Ongoing tariff negotiations with other countries and regions leave “uncertainty.”
• Downside risks remain; BOJ to maintain accommodative monetary policy to support the economy.
Summary
Bank of Japan Deputy Governor Shinichi Uchida praised the conclusion of Japan-U.S. tariff negotiations as a “significant step forward” during a press conference on July 23 in Kochi. He highlighted the reduction in tariff-related uncertainty as a positive development for Japan’s economy and businesses. However, Uchida noted that the May Outlook Report already accounted for some progress in international negotiations, and thus, the overall economic framework remains unchanged. Despite this progress, he pointed out that ongoing negotiations with other countries and regions, as well as unclear tariff impacts, continue to pose uncertainty. Uchida emphasized the need to monitor downside risks and reiterated the importance of maintaining accommodative monetary policies to support economic stability.
