Bank of Japan Governor Kazuo Ueda stated Wednesday that recently imposed US tariffs are anticipated to exert upward pressure on US inflation in the short term. However, he cautioned that these tariffs could potentially dampen US price levels over the longer term by impeding US economic expansion. Ueda emphasized the potential for significant impacts on global trade activity, contingent upon the magnitude of the tariff increases. He further noted the importance of assessing the influence of these tariffs on household and corporate sentiment when evaluating their broader implications for the global economy. Ueda indicated that the upcoming IMF/G20 meetings later this month would provide an opportunity for finance leaders to exchange perspectives and deliberate on policy approaches related to US tariffs. At the time of reporting, the USD/JPY exchange rate had increased by 0.19% to 149.88.
