Shinichi Uchida: Japan's economy and monetary policy

Speech by Mr Shinichi Uchida, Deputy Governor of the Bank of Japan, at a meeting with local leaders, Kochi, 23 July 2025. 

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

It is my pleasure to have the opportunity today to exchange views with leaders in administrative, economic, and financial areas in Kochi Prefecture. I would like to take this chance to express my sincere gratitude for your cooperation with the activities of the Bank of Japan's Kochi Branch. Today, I will explain Japan's economic activity and prices, as well as the Bank's conduct of monetary policy.

I. Current Situation of and Outlook for Economic Activity and Prices

I will start by talking about developments in economic activity and prices. Please take a look at Chart 1. Japan's economy has recovered moderately, although some weakness has been seen in part. As for the outlook, Japan's economic growth is likely to moderate due to the effects of trade and other policies in each jurisdiction. Thereafter, however, the growth rate is likely to rise, with overseas economies returning to a moderate growth path. That said, there are extremely high uncertainties regarding the future course of trade and other policies in each jurisdiction and the impact of these policies on economic activity and prices at home and abroad. The outlook I just explained is developed based on assumptions including the following: negotiations between jurisdictions will progress to some extent, and significant disruptions of global supply chains will be avoided.