BOJ's Ueda warns of potential policy action if U.S. tariffs damage Japanese economy

From Yahoo Finance: 2025-04-15 18:28:00

Bank of Japan Governor Kazuo Ueda stated potential policy action may be necessary if U.S. tariffs negatively impact the Japanese economy, potentially halting rate hikes. Heightened risks from Trump’s policies have impacted confidence. BOJ will monitor developments closely before deciding on next steps. Market expects rates to remain unchanged in April-May meeting.

Ueda’s concerns over U.S. tariffs driving BOJ’s cautious approach. Market economist predicts rate hike in July or September, favoring September. Ueda highlights risks to Japanese exports and household sentiment from higher tariffs. Food inflation may moderate, real wage growth expected to rise. Price outlook hinges on various factors.

BOJ to release new growth and price forecasts, monitoring data and surveys. Previous stimulus program ended last year, rates raised to 0.5% in January. Uncertainty from Trump’s tariffs complicates rate hike decision. Analysts still anticipate a rate hike, not a cut. Japan seeks concessions in trade talks with the U.S.

Japan to begin trade negotiations with U.S. as tariffs threaten exports. Ueda to discuss global economy impact of tariffs at IMF meetings in Washington. Decision on rate hikes influenced by external factors. Expectations for rate hike persist despite uncertainties. Trade negotiations key to mitigating economic impact.

Read more: BOJ’s Ueda says central bank may need to respond if US tariffs hurt economy, Sankei reports