Kazuyuki Masu: Economic activity, prices, and monetary policy in Japan
Speech by Mr Kazuyuki Masu, Member of the Policy Board of the Bank of Japan, at a meeting with local leaders, Ehime, 6 February 2026.
The views expressed in this speech are those of the speaker and not the view of the BIS.
I. Economic Activity and Prices
I will begin my speech by talking about recent developments in economic activity and prices in Japan and then move on to discuss the conduct of monetary policy. First, while offering my personal views, let me briefly outline the factors the Bank of Japan is paying particular attention to in monetary policy conduct.
U.S. Tariff Policy
One of the key points of focus is the impact of U.S. tariff policy. The whole world has been wrestling with this issue since spring 2025. Unexpectedly, however, the issue appears to be winding down without causing significant economic disruption in Japan. As tariffs have been raised by as much as 12.5 percent for automobiles, a major Japanese export to the United States, there has inevitably been an influence on the Japanese automobile industry. Still, the business performance of Japanese automakers seems to have been partly supported by the yen's depreciation, which continues to underpin earnings.