BOJ’s Noguchi Navigates Japan’s Inflationary Shift Amid Global Headwinds

Key TakeawaysBank of Japan (BOJ) board member Asahi Noguchi indicates a heightened need to adjust the policy rate as Japan moves closer to its 2% inflation target, signaling a new phase for monetary policy.Noguchi emphasizes that while the economy is transitioning from a zero-inflation standard, U.S. tariff policies pose significant downside risks, requiring a flexible and cautious policy approach.Inflation expectations are slowly converging on 2%, driven by shifts in corporate price and wage-setting behavi ...