From Yahoo Finance: 2025-05-26 20:45:00

Bank of Japan Governor Kazuo Ueda warns of rising food prices impacting inflation near the 2% target. Ueda signals readiness for rate hikes as inflation expectations stand high. BOJ closely monitoring U.S. tariffs and domestic pressures for future rate decisions. Core inflation hits 3.5% in April, highest in two years, raising likelihood of rate hike.

Supply-side challenges complicate BOJ’s rate decisions. Central bank aims for durable 2% inflation through domestic demand and wage hikes. High food prices, attributed to rising import costs, impact consumption and inflation. Bank for International Settlements calls for focus on supply-side factors affecting inflation. BOJ signals potential rate hikes as economy improves, but U.S. tariffs disrupt growth forecasts.

Central banks urged to consider supply-side factors affecting inflation. BOJ ended stimulus program, raised rates to 0.5% in January. Economic fallout from U.S. tariffs delays further rate hikes. Reuters poll shows economists expect rates to remain steady through September, with potential hike by year-end.

Read more: BOJ’s Ueda calls for vigilance over food inflation risks