Summary of the press conference held by Bank of Japan Deputy Governor Ryozo Himino on September 2, 2025.
Current Assessment of Monetary Policy
Deputy Governor Himino confirmed that the Japanese economy continues to maintain a moderate recovery trend. Private consumption remains firm supported by improvements in employment and income conditions, and capital investment is on an increasing trend backed by improved corporate profits. Exports continue to increase against the background of overseas economic recovery.
Evaluation of Price Developments
The year-on-year rate of change in the consumer price index (excluding fresh food) is around 2%, with the underlying inflation rate gradually increasing. He pointed out that a virtuous cycle between wages and prices is forming, as wage increases are outpacing price increases and real wages have turned positive.
Financial System Stability
Japan's financial system maintains stability overall. Financial institutions' capital adequacy ratios sufficiently exceed regulatory levels, and non-performing loan ratios remain at low levels. Regarding regional financial institutions, while the profit environment remains challenging due to population decline and prolonged low interest rates, he evaluated progress in efficiency improvements through management integration and digitalization.
Future Policy Management
Regarding the monetary policy normalization process, he reiterated the policy of proceeding at an appropriate pace while carefully examining economic, price, and financial conditions. He emphasized the importance of valuing dialogue with markets and continuing careful explanations of policy intentions.
Response to International Financial Conditions
He mentioned rising uncertainties surrounding international financial markets, including U.S. monetary policy trends, concerns about China's economic slowdown, and geopolitical risks, pointing out the need for flexible policy management while closely monitoring these developments.