BOJ warns that US tariff uncertainty could harm Japan's economy and household confidence.
From Yahoo Finance: 2025-04-16 21:23:00
Bank of Japan policymakers warned of increasing uncertainty due to U.S. President Trump’s tariffs, which could harm Japan’s fragile economy and household confidence. The bilateral trade talks with the U.S. did not include exchange rates. The BOJ will continue to raise interest rates if the economy and prices align with projections, despite heightened trade policy uncertainty.
BOJ Governor Kazuo Ueda stated that Trump’s tariffs could impact Japan’s economy through various channels, including trade activity and financial market volatility. Rising food prices could lead to broad-based price gains, heightening long-term inflation expectations. Board member Junko Nakagawa also warned of an overshoot in domestic inflation and the negative impact on the economy from falling exports and excessive market volatility.
The BOJ faces challenges in compiling new growth and inflation forecasts on April 30-May 1, with sources indicating a possible cut in economic growth forecasts due to Trump’s tariffs. The central bank raised interest rates to 0.5% in January, exiting a massive stimulus program last year with the goal of achieving the 2% inflation target.
Read more at Yahoo Finance: BOJ warns US tariff uncertainty may hurt confidence, economy