BOJ's Takata: Japan's Economy, Price Trends, and Central Bank Policy

Recent Trends in Global Economic Activity and Prices

Let me start by discussing the latest changes in economic performance and price movements. Overall, international economies have maintained a moderate pace of growth, though certain regions have experienced some softness, largely due to varying trade measures and policy decisions within each area.

The International Monetary Fund (IMF), in its January 2026 World Economic Outlook (WEO) Update, raised its projection for worldwide economic expansion compared to the April 2025 WEO, which had factored in the considerable effects of U.S. tariff actions, as well as the following October WEO (see Chart 1). Furthermore, as illustrated in Chart 2, the increase announced in January 2026 has completely counterbalanced the reduction made in April.