Japan's Economic and Price Conditions and Monetary Policy

Summary of remarks by Bank of Japan Policy Board Member Hajime Takata at the Mie Prefecture Economic and Financial Affairs Meeting on July 3, 2025. Japan's economy currently faces multiple structural changes, requiring careful balance in monetary policy management. While global economic uncertainty increases, domestic recovery continues moderately, though comprehensive policy management considering inflation pressures, labor market trends, and corporate earnings changes is crucial. Regional economic conditions require special attention, with careful examination of monetary easing effects and potential side effects. Future monetary policy will comprehensively consider economic, price, and financial conditions, aiming for sustainable and stable achievement of the 2% price stability target. Strengthening cooperation with regional financial institutions and improving funding conditions for regional enterprises are highlighted as key challenges.