Bank of Japan (BoJ) Governor Kazuo Ueda said the central bank will raise interest rates only when it is confident that economic and price growth will re-accelerate. He reaffirmed plans to continue tapering bond buying beyond March, signaling a steady exit from ultra-easy policy. Ueda warned that U.S. tariffs may initially hurt Japan’s economy by weighing on exports, which could affect corporate profits and consumer sentiment. “U.S. tariffs could weigh somewhat on Japanese companies' winter bonus payments and next year's wage talks with unions,” he told parliament. Still, Ueda expressed optimism about wage and economic growth regaining momentum. The BoJ, which lifted rates to 0.5% in January after ending a massive stimulus last year, remains open to further hikes. However, stubborn inflation driven by high rice prices clouds the outlook. At its June 16–17 meeting, it will review tapering plans and outline a new bond strategy for April 2026 onward.