Bank of Japan Policy Board member Yukitoshi Funo: New perspectives are needed to address upside risks.

Bank of Japan Policy Board member Yuko Nagasu said that if we only focus on the domestic economic situation, Japan will soon need a new policy perspective to deal with upward risks. After his speech, the yen rose against the dollar and Japanese government bond futures narrowed their gains. Nagasu stated in his speech in Hokkaido that on the other hand, the Japanese economy faces significant downside risks from U.S. tariffs. Currently, the central bank needs to evaluate underlying inflation as cautiously as possible. The bank not only needs to focus on downside risks, but also on upside risks.