Japanese Economy Minister Ryosei Akazawa said Friday the government acknowledges the Bank of Japan’s decision to hold interest rates steady, noting that policymakers acted prudently amid ongoing uncertainty in both domestic and global economic conditions.
- aware the BOJ chose to keep rates unchanged while mindful of the need to scrutinise developments at home and abroad,
Akazawa said, following the central bank’s move to leave policy on hold for now despite rising inflationary pressures. Akazawa stressed the importance of close coordination between the BOJ and the government, urging the central bank to carefully guide monetary policy in a way that achieves the 2% inflation target on a sustainable and stable basis.
On trade, Akazawa reiterated Japan’s intention to press the United States to implement its commitment to reduce auto and auto parts tariffs as agreed in the recent bilateral deal. He warned that elevated U.S. tariffs would weigh on Japan’s economy by dampening exports and exacerbating global demand weakness.
