BOJ's Ueda warns of global uncertainty, impact on wage outlook

By Leika Kihara

OSAKA (Reuters) -Bank of Japan Governor Kazuo Ueda said on Friday the central bank will scrutinise whether the impact from U.S. tariffs and prolonged overseas economic uncertainty could discourage companies from raising wages.

Ueda reiterated the central bank’s resolve to continue raising still-low interest rates if the economy and prices move in line with its forecasts.

But he said there were various uncertainties surrounding Japan’s economic outlook, such as growing signs of labour market weakness in the United States and the expected impact of higher U.S. tariffs on Japanese corporate profits.

“If uncertainty regarding overseas economies and trade policies remains high, firms may place stronger emphasis on cost-cutting and may weaken their efforts to reflect price in