BOJ Statement on Monetary Policy

Japan's economic growth is likely to be modest, as trade and other policies in each jurisdiction lead to a slowdown in overseas economies and to a decline in domestic corporate profits and other factors, although factors such as accommodative financial conditions are expected to provide support. Thereafter, Japan's economic growth rate is likely to rise, with overseas economies returning to a moderate growth path. The year-on-year rate of increase in the consumer price index (CPI, all items less fresh food) is likely to decelerate to a level below 2 percent through the first half of fiscal 2026, with the waning of the effects of the rise in food prices, such as rice prices. Meanwhile, underlying CPI inflation is likely to be sluggish, mainly affected by the growth pace of the economy. Thereafter, since it is projected that a sense of labor shortage will grow as the economic growth rate rises and that medium- to long-term inflation expectations will rise, it is expected that underlying CPI inflation and the rate of increase in the CPI (all items less fresh food) will increase gradually and, in the second half of the projection period, be at BOJ QUARTERLY REPORT: UNDERLYING CONSUMER INFLATION LIKELY TO STAGNATE ON SLOWING GROWTH, BUT INCREASE GRADUALLY THEREAFTER UNDERLYING CONSUMER INFLATION LIKELY TO BE AT LEVEL GENERALLY CONSISTENT WITH 2% TARGET IN SECOND HALF OF PROJECTION PERIOD FROM FISCAL 2025 THROUGH 2027…

*TRUMP SAID MEETING WITH XI WAS AMAZING, OUTSTANDING *TRUMP ON CHINA TRADE DEAL: IN AGREEMENT ON MANY ELEMENTS *TRUMP REDUCED FENTANYL TARIFFS TO 10% EFFECTIVE IMMEDIATELY *TRUMP: SOYBEAN PURCHASES STARTING IMMEDIATELY *TRUMP AGREEMENT ON SOYBEANS, AG PRODUCTS TRUMP: MEETING WITH XI WAS AMAZING A LOT OF DECISIONS WERE MADE WILL BE PROVIDING CONCLUSIONS ON VERY IMPORTANT THINGS PURCHASES OF SOYBEAN WILL START IMMEDIATELY AGREED THAT XI WILL WORK VERY HARD TO STOP FENTANYL I WOULDN'T SAY EVERYTHING WAS DISCUSSED WE DID DISCUSS… TRUMP: TARIFFS ON CHINA WILL BE 47% DOWN FROM 57% GOING TO CHINA IN APRIL I'LL BE GOING TO CHINA IN APRIL XI WILL BE COMING TO US SOME TIME AFTER THAT GOING TO WORK TOGETHER WITH XI ON UKRAINE TO GET SOMETHING DONE Trump: Taiwan never mentioned in discussions with Xi

*TRUMP SAYS HE HAD VERY NICE CONVERSATION WITH CANADA'S CARNEY *TRUMP REMARKS END ABOARD AIR FORCE ONE