The OECD chief endorses the Bank of Japan’s monetary policy while urging trade reforms as U.S.-China talks approach.
The OECD secretary-general stated the Bank of Japan is not clearly behind on monetary policy, citing anchored inflation expectations and strengthening wage dynamics. The assessment aligns with the BOJ’s gradual approach to rate adjustments amid global economic uncertainty.
The call for trade reform highlights concerns over market-distorting subsidies and unfair practices, framing the upcoming Trump-Xi summit as a critical step. The OECD emphasized the need for rules-based trading arrangements to address structural tensions and enhance supply chain resilience.
Dialogue between the U.S. and China is seen as necessary but insufficient to resolve broader trade disputes. The OECD identified economic security and tackling unfair trade practices as key priorities for global markets.