TOKYO (Reuters) -Bank of Japan Governor Kazuo Ueda said the central bank may need to take policy action if U.S. tariffs hurt the Japanese economy, the Sankei newspaper reported on Wednesday.
Since February, risks surrounding U.S. President Donald Trump’s policies have “moved closer towards the bad scenario” the BOJ had envisioned, Ueda said in an interview, adding that recent developments have already affected corporate and household confidence.
“We will scrutinise without pre-conception” the impact of Trump’s tariff policy on Japan’s economy, Ueda said in an interview with Sankei.
“A policy response may become necessary. We will make an appropriate decision in accordance with changes in developments,” Ueda said on how the BOJ will react if Trump’s tariff policy puts downward pressure on Japan’s economy, according to Sankei.
(Reporting by Leika Kihara; Editing by Chris Reese and Sandra Maler)
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