BOJ Expected to Hold Rates Amid U.S. Tariff Concerns
The Bank of Japan is poised to maintain interest rates at current levels as policymakers weigh the economic fallout from U.S. trade measures. Governor Kazuo Ueda’s cautious stance reflects growing uncertainty about whether wage growth can sustain inflation targets while exporters face tariff pressures.
Market watchers anticipate a dovish hold despite earlier signals about potential rate hikes. The central bank may revise growth forecasts downward while maintaining that trade tensions won’t derail long-term policy normalization. This delicate balancing act comes as Japanese firms reassess wage hike commitments amid fluctuating demand.