BOJ Governor Ueda shares concerns about US tariffs’ impact
Press Hub UCapital
Share:
Kazuo Ueda, the Bank of Japan’s governor (BOJ), stated today during a meeting with parliament that U.S. tariffs could have a huge impact on global trade and economic growth. Ueda also expressed his intention to discuss the matter with his various counterparts during the upcoming G20 summit in South Africa, which will be held between November 22nd and 25th, particularly to discuss U.S. tariffs’ impact on global economy.
According to Ueda, it is complex to provide a definitive estimate of U.S. tariffs scale at this time; however, it is certain that the impact will be influenced by the trade activity of every country involved. The Governor of the BOJ also highlighted another major issue concerning the sentiment and spending capacity of households and businesses.
According to some global surveys, in March, factory activity levels dropped significantly, from Japan to UK, as companies and investors prepared for the economic impact of U.S. tariffs. Meanwhile, analysts believe that the impact of tariffs on Japanese economy will influence BOJ's decisions regarding interest rate hikes, which will be made between April 30th and May 1st, during the upcoming monetary policy meeting. Analysts expect a rate hike to occur around the third quarter, most probably on july.
According to Ueda, it is complex to provide a definitive estimate of U.S. tariffs scale at this time; however, it is certain that the impact will be influenced by the trade activity of every country involved. The Governor of the BOJ also highlighted another major issue concerning the sentiment and spending capacity of households and businesses.
According to some global surveys, in March, factory activity levels dropped significantly, from Japan to UK, as companies and investors prepared for the economic impact of U.S. tariffs. Meanwhile, analysts believe that the impact of tariffs on Japanese economy will influence BOJ's decisions regarding interest rate hikes, which will be made between April 30th and May 1st, during the upcoming monetary policy meeting. Analysts expect a rate hike to occur around the third quarter, most probably on july.