BoJ’s Uchida: There are both upside, downside risks from US tariffs on Japan’s prices

Bank of Japan (BoJ) Deputy Governor Shinichi Uchida said on Tuesday that “there are both upside, downside risks from US tariffs on Japan’s prices.”

Additional comments

• US tariffs put downward pressure on Japan's economy.
• Japan's economic growth is expected to slow to around its potential before resuming moderate growth as overseas economies recover.
• Japan's output gap to remain around current levels, after which it will resume improvement toward end of the BoJ’s three-year projection period through fiscal 2027.
• The BoJ expected to keep raising interest rates if economy, prices improve as we project.