Japan Nears Inflation Target as Energy Markets Await OPEC+ Decisions Amid Global Challenges
Comments by the Bank of Japan governor and oil price movements reflect ongoing uncertainty in global monetary and trade policies.

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Ueda

Japan Edges Closer to Inflation Goal, But Challenges Persist and Monetary Policy Remains on Alert
The Japanese yen posted notable gains during today’s trading, driven by key remarks from Bank of Japan Governor Kazuo Ueda.
He stated that Japan’s economy is now “closer to the 2% inflation target” than it has been in recent decades,
but stressed that the target “has not yet been achieved.”

Speaking on Tuesday, Ueda explained that many central bank governors within the G7 countries feel they’ve made progress in curbing inflation,
though they continue to face growing challenges due to escalating trade policy uncertainty and the resurgence of supply shocks.

Regarding Japan, Ueda emphasized that the country is still striving to achieve its inflation goal in a stable and sustainable manner.
He pointed out that rising prices—especially for food items like rice—have recently pushed inflation upward.
However, he added that real interest rates remain significantly in negative territory.

Ueda revealed that the Bank of Japan has recently revised its economic and inflation forecasts slightly downward.
Nevertheless, he still expects core inflation to gradually approach the 2% level during the second half of the forecast horizon.

Despite that, Ueda expressed clear caution, warning that risks to the economy and prices continue to lean to the downside
—particularly during fiscal years 2025 and 2026—amid ongoing global uncertainty.

Oil

Oil Prices Fall as Markets Await OPEC+ Meeting and Trade Talks Ease Concerns
It fell during Tuesday morning trading as markets widely anticipated the upcoming OPEC+ meeting later this week,
with expectations that the alliance might announce an increase in crude production starting in July.

Brent crude futures for July delivery dropped by 0.3%, or 20 cents, to $64.54 per barrel.
Similarly, U.S. West Texas Intermediate (WTI) futures declined by 0.45%, or 28 cents, to $61.25 per barrel.

Despite the slight decline, U.S. President Donald Trump’s announcement to extend trade negotiations
with the European Union until July 9 helped ease concerns over an escalating trade war that could negatively impact global energy demand.

Markets are also awaiting U.S. oil inventory data from the American Petroleum Institute (API),
expected on Wednesday.
Meanwhile, the official report from the U.S. Energy Information Administration (EIA) has been delayed
until Thursday due to the Memorial Day holiday in the United States.

Japan Nears Inflation Target as Energy Markets Await OPEC+

Japan Nears Inflation Target as Energy Markets Await OPEC+

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