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Sources: US-Japan Trade Agreement Clears Way for Bank of Japan to Resume Rate Hikes
Summary: Sources report that the trade agreement reached between US President Trump and Japan has opened up space for the Bank of Japan to resume rate hikes this year. The Bank of Japan may start conveying this prospect by issuing a less pessimistic view on the economic outlook. However, four sources familiar with the Bank of ...
Sources report that the trade agreement reached between US President Trump and Japan has opened up space for the Bank of Japan to resume rate hikes this year. The Bank of Japan may start conveying this prospect by issuing a less pessimistic view on the economic outlook. However, four sources familiar with the Bank of Japan's thinking suggest that it is difficult to say that rate hikes are a done deal in the near future, as the timing of rate hikes depends on whether the economy can withstand the impact of US tariffs. One source stated, 'As the clouds hanging over US trade policy dissipate, the Bank of Japan may see room for rate hikes this year.' Another source added, 'Not all trade-related uncertainties have been eliminated,' emphasizing that the Bank of Japan must carefully study data before the end of autumn to find clues on how US tariffs are affecting the economy.
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Link: Sources: US-Japan Trade Agreement Clears Way for Bank of Japan to Resume Rate Hikes [Copy]
