(Update) BOJ's Ueda Warns of Slowing Inflation in Japan

   Tokyo, May 1 (Jiji Press)--Bank of Japan Governor Kazuo Ueda on Thursday warned that underlying inflation in the country will slow temporarily due to the impact of U.S. President Donald Trump's steep tariffs on the Japanese economy.
   "We're not thinking of raising interest rates forcibly when inflation is slowing," Ueda told a press conference after the central bank held rates steady at a policy meeting.
   Because of the tariffs, Ueda said, "Corporate profits will be pushed down by slowing overseas economies and the pace of economic growth will slow." In addition, he said, "There could be an impact on winter bonuses and next year's 'shunto' wage talks."
   The BOJ pushed back the estimated timing of stably achieving 2 pct inflation to the latter half of its projection period through fiscal 2027 from the latter half of the previous projection period through fiscal 2026.
   The timing "will be delayed a little, but the timing of an interest rate increase will not necessarily be delayed in the same way," Ueda said, hinting that the BOJ will raise rates once uncertainty over Trump's trade policies is removed.

(2025/05/01-21:42)

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