Global Central Banks Convene in Tokyo on Inflation Growth Challenges

Global central bankers convened in Tokyo for the Bank of Japan's annual symposium, focused on the theme 'New Challenges for Monetary Policy,' addressing the dual issues of persistent inflation and slowing economic growth amid volatile markets and trade tensions, particularly from U.S. tariffs. The gathering included officials from major central banks such as the Federal Reserve, European Central Bank, Bank of Canada, and Reserve Bank of Australia, who discussed the varied approaches to monetary policy, with some raising interest rates and others cutting them to balance inflation control and economic support. The BOJ stands out by continuing a gradual tightening of monetary policy after decades of ultra-low rates, aiming to raise interest rates and reduce bond purchases despite questions about the pace due to recent global uncertainties. Former BOJ official Nobuyasu Atago emphasized the importance of clear communication on rate hikes, suggesting the BOJ may pause but not abandon tightening efforts. The forum also reviewed lessons from past unconventional monetary easing and cautioned against underestimating long-lasting inflation caused by supply shocks. Overall, the conference highlighted the complex environment central banks face, shaped significantly by the legacy of U.S. trade policies and global economic volatility.