28.08.202503:04:01UTC+00BoJ to Proceed Carefully on Interest Rates: Board Member Nakagawa

The Bank of Japan is prepared to increase interest rates if its projections for economic growth and inflation are met, according to board member Junko Nakagawa. In her address, she highlighted the significance of the upcoming September Tankan survey, which will be crucial in evaluating the effects of global trade discussions. Nakagawa pointed out that significant uncertainties persist regarding future trade policies and their potential impact, cautioning that these could negatively affect business and household confidence both domestically and internationally. Although Japan’s economy has shown moderate recovery, some sectors remain sluggish. The BoJ plans to continue a careful examination of data before making any policy changes. Nakagawa also mentioned potential upward pressure on wages and prices, but warned that if companies focus more on cutting costs rather than transferring tariff-related cost increases to consumers, the current momentum for wage growth might diminish. Changes in companies' approaches to increasing wages and prices will be scrutinized closely.