Kazuo Ueda, Governor of the Bank of Japan, said interest rates will not aggressively increase unless the economy shows marked signs of improvement and stability.
Kazuo stressed that as long as economic conditions do not support a rate hike, the bank monetary policy will remain flexible and rates will not spike to make room for monetary easing.
In May, the Bank of Japan decided to keep short-term interest rates at around 0.05%, lowering its growth and inflation forecasts for 2025.
Speaking at a parliamentary session, Kazuo added that economic uncertainty remains high due to U.S. tariffs. He said global uncertainties reinforced the bank’s cautious approach, warning that U.S. President Donald Trump’s tariffs could slow global and national economic growth.
