Bank of Japan Deputy Governor Uchida held a press conference in Kochi City on July 23, 2025, focusing on his assessment of regional economic conditions, monetary policy management approach, and the impact of the Japan-US tariff negotiation agreement.
Regarding Kochi Prefecture's economy, he assessed that it is recovering overall, supported by factors such as increased tourist numbers. While many companies continue aggressive wage increases this fiscal year, he noted that some small and micro enterprises have not been able to implement wage increases, and the number of businesses going bankrupt or closing down is on an increasing trend.
On monetary policy, Deputy Governor Uchida emphasized the importance of carefully assessing economic and price developments while maintaining the Bank's commitment to achieving the 2% inflation target in a sustainable and stable manner. He noted that the pace of economic recovery varies by region and industry, requiring careful monitoring of regional economic conditions.
Regarding the impact of the Japan-US tariff agreement reached in early 2025, he explained that while the agreement reduces uncertainty in trade relations, its economic effects will need to be monitored closely. The agreement is expected to have positive effects on export-oriented industries, particularly in manufacturing, but the full impact will depend on implementation details and global economic conditions.
The Deputy Governor also addressed concerns about labor shortages in regional areas, noting that demographic changes pose structural challenges requiring long-term solutions including productivity improvements and labor market reforms. He emphasized the importance of supporting small and medium enterprises in adapting to these challenges while maintaining employment stability.
Looking ahead, he stressed the need for continued coordination between monetary policy and other economic policies to support sustainable economic growth, particularly in regional areas that face unique challenges related to population aging and industrial transformation.