The Japan Financial Services Agency published an overview of a joint press conference in which Finance Minister Katayama and Bank of Japan Governor Ueda outlined the outcome of the G7 Finance Ministers and Central Bank Governors' meeting. The minister said the two-day meeting produced a joint communiqué focused on the economic and financial effects of the Middle East situation, global imbalances linked to non-market policies, critical minerals supply chains and closer G7 cooperation on new financial technologies, while Ueda said central banks would monitor the effect of higher energy prices on inflation, economic activity and financial markets. According to the overview, the communiqué recognizes that pressure on energy, food and fertilizer supply chains is raising risks to growth and inflation, especially for vulnerable countries, and calls for the rapid restoration of free and safe navigation through the Strait of Hormuz. Participants agreed to monitor the effect of Middle East conflicts on markets and, if needed, set up flexible forums for information exchange. They also agreed that non-market policies and practices can drive global imbalances and that the International Monetary Fund should monitor countries' responses. On critical minerals, the communiqué backs broader investment, recycling, sourcing standards and public and private financing, with deeper involvement from multilateral development banks including through the RISE partnership. On financial technology, G7 experts will step up information exchange and identify best practices in response to advances in frontier artificial intelligence. Katayama also said the communiqué restated the May 2017 commitment on exchange rates. In the question-and-answer session, Ueda said the Middle East shock is starting to appear in Japan through weak exports to the region, lower operating rates in oil and chemical industries, weak sentiment and earlier price pass-through in petroleum, chemical and plastic products. He added that long-term interest rates have risen rapidly on global inflation concerns and domestic policy expectations, and that the Bank of Japan will review market trends and market functioning, including at the June interim evaluation of its government bond purchase reduction plan and through discussions with bond market participants.
Japan Financial Services Agency2026-05-26
Japan Financial Services Agency publishes joint G7 press conference summary covering communiqué on global imbalances and Bank of Japan market monitoring
The Japan Financial Services Agency reported on a joint press conference where Finance Minister Katayama and Bank of Japan Governor Ueda outlined the G7 Finance Ministers and Central Bank Governors’ communiqué on the economic and financial impact of Middle East tensions, non-market policies, critical minerals supply chains and financial technology, including frontier AI. It highlights risks from energy, food and fertilizer disruptions, calls for safe navigation through the Strait of Hormuz, supports enhanced IMF monitoring of global imbalances, and restates the May 2017 exchange rate commitment. Ueda noted emerging effects of the Middle East shock on Japan’s exports, industrial activity and prices, and said the Bank of Japan will assess bond market conditions and its government bond purchase reduction plan at the June interim evaluation.