The Bank of Japan will continue to raise the policy rate and adjust monetary accommodation in line with improvements in economic activity and prices, Governor Kazuo Ueda said Friday, adding that decisions will be made “as appropriate and without any preconceptions.” He noted U.S. tariffs are weighing on exporters’ profits, especially in autos, though there is little sign of broader damage to investment, jobs, or wages. Consumption should stay firm on rising incomes, but growth may slow as overseas economies weaken before rebounding. Ueda said over half of recent CPI gains come from food, particularly rice, driven by temporary supply shocks rather than demand. These effects should fade, with underlying inflation gradually rising toward the 2% target. Strong corporate profits, especially in non-manufacturing, should buffer the economy and support moderate wage-price growth, though prolonged global uncertainty could lead firms to cut costs and weaken wage pass-through.