BoJ's Uchida says will raise rates if inflation rises and economy improves

Bank of Japan Deputy Governor Shinichi Uchida said on Friday that the central bank will raise interest rates if underlying inflation heightens against the background of continued improvements in the economy. 

Key quotes

Will raise interest rates if underlying inflation heightens against background of continued improvements in the economy. 

We will examine, without any preset idea, whether our economic, price forecasts laid out in our quarterly report will be achieved.

We will scrutinise at each meeting economic, price developments and risks including the impact of U.S. tariffs.

Trump tariffs are likely to put downward pressure on Japan, global economies.

There are various upside, downside impacts on prices that could come from Trump tariffs,

Trump tariffs could push down prices if they cool the economy, but may push up prices via impact on global supply chains.

Trump tariffs could affect prices via market, FX moves.

Market reaction  

At the press time, the USD/JPY pair is up 0.08% on the day to trade at 146.19.