BOJ’s Ueda noted that ongoing discussions regarding tariffs are causing significant uncertainty for central banks. He stressed the importance of examining US tariff policies and international reactions, as they could impact both global and Japanese economies.

Decisions on monetary policy will depend on this analysis of US developments and their effects. Ueda’s remarks reflect the current confusion surrounding future economic actions, and he refrained from discussing recent changes in Japan’s long-term interest rates.

Kazuo’s comments highlight how uncertain conditions are shaping economic policy considerations. With tariffs under discussion, central banks must weigh potential consequences on trade flows and growth. The concern is clear—if policy shifts in the United States disrupt markets, the effects will not be contained within a single country. Policymakers in Japan, as well as elsewhere, are watching closely.

The focus on American policy choices is not misplaced. Trade restrictions can alter supply chains, production costs, and demand. If major economies adjust their stance, businesses and investors will react accordingly. This means central banks must be prepared for possible shifts in inflation trends, currency values, and investment behaviour.

Kazuo stopped short of offering insight into Japan’s long-term interest rates. That silence speaks volumes. It suggests that officials are in no rush to reveal their thinking while external risks remain uncertain. With ongoing trade discussions and potential policy shifts abroad, caution makes sense. Decisions will not be made in isolation.

We recognise that these ongoing assessments matter for financial markets. Volatility tends to rise when policy directions are unclear. If Japan’s central bank sees reasons to adjust its stance, it will likely be responding to clearer signals from abroad. Until then, the wait-and-see approach remains in place.

For now, those watching markets should stay alert to any changes in the tariff debate. If new measures are announced, the effects could ripple across currencies, equities, and bonds. Whether this leads to shifts in interest rates or monetary policy decisions will depend on how events unfold in the coming weeks. Close monitoring will be necessary to interpret any indications from policymakers.