Bank of Japan Governor Ueda:
- US tariffs will likely affect Japan’s economy through various channels but it will probably first come via export firms
- If US tariffs hurt exporters’ profits, that could have broader impact on households, firms such as by souring consumer sentiment
- Japan’s real wages are negative, aware that is having big impact on consumption, economy
- Impact of US tariffs on Japan’s economy could have ‘somewhat negative effect’ on firms’ winter bonus payments and next year’s wage negotiations
- Wage growth may slow somewhat due to tariff impact, but likely to re-accelerate thereafter
- Consumption likely to maintain moderate uptrend as real wages gradually improve
The implications of what Ueda has been saying today are not encouraging for an imminent BoJ rate hike.
Earlier:
This article was written by Eamonn Sheridan at www.forexlive.com.
