BOJ’s Ueda: Need to closely watch bank lending, corporate finances

Ueda's remarks frame Japan's policy dilemma in terms that matter beyond Tokyo: the BOJ's ultra-loose stance is being judged against both its intended effects and its side effects, while financing strain among smaller firms suggests the transmission channel is uneven. The acknowledgment that inflation missed the two-year target, alongside energy- and input-driven price pressure, complicates any read on how durable underlying inflation really is. For global markets, the open question is whether the BOJ's assessment of lending and corporate finances shifts the timing of any policy normalization, which has been a persistent source of cross-asset volatility.