Tokyo, May 19, 2025 - Bank of Japan Deputy Governor Shinichi Uchida indicated on Monday that the central bank is prepared to raise interest rates further in 2025. This action will be considered if economic growth accelerates and underlying inflation trends toward the 2% target.
Uchida emphasized the high level of uncertainty surrounding global trade policies and their potential consequences. He noted that recent gains in domestic prices were largely due to higher import costs and increasing food costs, such as for rice, acknowledging the strain on households. The bank will assess economic and price movements without preconceived notions to align with forecasts.
The Bank of Japan remains vigilant in monitoring economic indicators to make informed decisions regarding monetary policy. The goal is to achieve sustainable growth and price stability amidst global economic uncertainties and trade tensions. The BoJ held its interest rate at 0.5% during its most recent meeting on May 1, 2025, and remains open to future hikes contingent on economic indicators.