BOJ’s inflation warning leaves room for another rate hike this year
From Yahoo Finance: 2025-06-18 01:31:00
The Bank of Japan may pause before raising interest rates due to price pressures. Governor Kazuo Ueda cites downside risks from U.S. tariffs and upside risks from food prices. Rising fuel costs could push up core consumer inflation by 0.2%. BOJ may revise price forecasts in July for a possible rate hike in October.
U.S. trade policy uncertainty affects BOJ’s stimulus plans. Former BOJ board member sees rate hike around year-end due to Trump’s tariffs. BOJ warns of supply shocks from rising food prices. Rising food prices impact inflation expectations. BOJ may stand pat or hike swiftly based on U.S. trade policy uncertainty.
BOJ closely monitors how rising food prices affect inflation expectations. Doubled rice prices draw public attention. Consumers no longer scared by price hikes. BOJ may consider rate hikes if inflation stays around 4%. Timing of rate hikes uncertain. ING expects rate hike in 4Q25 if core inflation continues to stay above 2%.
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