Japan’s economy is expected to recover moderately, though policymakers remain cautious about external risks, Economy Minister Yoshitaka Akazawa said on Tuesday. He highlighted potential headwinds from U.S. trade policies and the impact of rising energy and food costs on household sentiment, which could weigh on consumer spending, also squeezing businesses.
Akazawa reiterated the government and Bank of Japan’s (BOJ) commitment to achieving stable 2% inflation, noting some progress toward that goal. He emphasized the need for exchange rates to move in line with economic fundamentals, while reaffirming that monetary policy decisions rest with the BOJ.
USD/JPY is on its session lows"
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