BoJ Deputy Governor Shinichi Uchida highlighted resilience in Japan’s economy, pointing to positive corporate sentiment in the Tankan survey and improved manufacturer outlooks as trade uncertainty with the US has eased. He noted that despite tariff-related profit pressures for some firms, revenues remain elevated, capital expenditure is trending higher, and consumption is firm.
On inflation, Uchida said underlying price growth may stagnate in the near term but should re-accelerate gradually as expectations rise. This suggests the BoJ continues to see progress toward achieving its price stability goal, albeit at a measured pace.
Reaffirming the policy stance, Uchida said the BoJ will continue lifting rates if economic and price trends evolve as projected, while remaining data-dependent. He stressed that decisions will be guided by evidence, not pre-set commitments.
