Japan’s Akazawa Sees Modest Recovery, Says BOJ Faces No U.S. Rate Pressure

Japan’s Economy Minister Akazawa said recent data show the country’s economy is recovering “modestly,” but he cautioned that officials must stay alert to external risks such as U.S. trade policies that could damp growth. Akazawa added that U.S. Treasury Secretary Bessent did not ask Tokyo to press the Bank of Japan to raise interest rates, clarifying that Bessent merely observed the BOJ may move because it is running behind on addressing inflation. The minister stressed he will not urge the central bank to set policy at any specific level and said the government and the BOJ remain committed to achieving their shared 2% inflation target to support stronger long-term growth.