Bank of Japan Governor Kazuo Ueda: Loose monetary policy will continue to support the economy.

On October 30, Jin10 reported that Bank of Japan Governor Kazuo Ueda stated that the Japanese economy is recovering moderately, but there are still signs of weakness. The overseas economy is slowing down due to trade policies, and corporate profits are declining, leading to expectations of moderate economic growth. The response of overseas economies and prices to trade policies remains highly uncertain. Ueda believes that it is necessary to abandon preconceived notions and objectively assess whether the economic outlook can be realized. Analysts point out that the Bank of Japan's decision to maintain interest rates today will continue to raise market doubts about a rate hike in December, especially as Prime Minister Kishida Fumio's influence is expected to grow in the coming months. In light of its policy intentions and the potential fiscal “firepower” it could release, the pressure on the Bank of Japan to tighten policy in the short term has eased. Therefore, the motivation and urgency for the central bank to take action have both decreased.