Japanese Finance Minister Katsunobu Kato and Prime Minister Shigeru Ishiba have both denied accusations from U.S. President Donald Trump that Japan is pursuing a policy to devalue the yen. Kato emphasized that Japan is not adopting measures to weaken its currency, while Ishiba stated that Tokyo is not pursuing a so-called currency devaluation policy. These statements come in response to Trump's claims that Japan and China are gaining an unfair advantage through foreign exchange policy. Bank of Japan (BOJ) Governor Kazuo Ueda highlighted the potential challenges that increasing geopolitical tensions could pose to the resilience of Asian emerging market economies. He noted that such tensions might lead to abrupt changes in cross-border capital flows, impacting the region's economic stability. BOJ Deputy Governor Shinichi Uchida outlined the central bank's approach to future interest rate adjustments, stating that the pace of rate hikes will depend on economic, price, and financial developments at the time. Uchida also mentioned that the BOJ will not raise rates at every policy meeting and does not have a preset idea on the pace of future rate hikes. He emphasized that the bank's monetary policy is aimed at achieving price stability, not manipulating foreign exchange rates. Uchida further discussed the impact of U.S. tariffs on Japan's economy and prices, noting that higher tariffs will clearly affect Japan through their impact on overseas growth. He indicated that the BOJ will assess the holistic impact of U.S. policies, including 25% tariffs on Mexico and Canada and an additional 10% on China, when forming new forecasts and deciding on policy at the April 30-May 1 meeting. Regarding the BOJ's holdings of exchange-traded funds (ETFs), Uchida stated that there are no plans to immediately sell these assets, and the future handling of these holdings will require careful consideration over time. He also noted that inflation is rising but remains below the target rate of 2%, and wage trends are crucial for assessing Japan's trend inflation. Uchida highlighted the importance of monitoring price increases in rice and fresh food, which could influence consumer inflation expectations.