Japan’s deputy governor, Shinichi Uchida, credits the U.S. trade deal for reducing economic uncertainty. The BOJ may resume interest rate hikes as optimism grows. Uchida expects the deal to boost inflation to reach 2%. The BOJ plans to balance risks and adjust policy accordingly. Analysts predict a rate hike by year-end.

The trade deal with the U.S. brings relief to Japanese companies by reducing uncertainty. Labor shortages could lead to wage hikes. BOJ expects inflation to hit 2% by fiscal 2026-2027. Political uncertainty may rise due to potential Prime Minister resignation. Analysts see a higher chance of a rate hike this year.

Inflation in Japan exceeds expectations, driven by rising food costs. Uchida notes significant changes in firms’ pricing behavior. Food prices impact households’ inflation expectations. The BOJ will monitor price pressures to guide monetary policy decisions. Concerns about U.S. tariffs have clouded the rate outlook.

Read more at Yahoo Finance: BOJ sees trade deal as raising chance of meeting inflation goal