Particle.news
Download on the App Store
3 ARTICLES
·
3w ago

Bank of Japan Prepares to Cut Growth Forecasts as U.S. Tariffs Pressure Economy

Governor Kazuo Ueda signals data-driven approach to rate hikes, with a potential pause depending on tariff impacts.

A passerby walks past in front of the Bank of Japan headquarters in Tokyo, Japan January 23, 2025. REUTERS/Issei Kato/File Photo
Bank of Japan (BOJ) Governor Kazuo Ueda attends a press conference after the central bank's policy meeting at BOJ headquarters in Tokyo, Japan, March 19, 2025. REUTERS/Manami Yamada/File Photo
Image

Overview

  • The Bank of Japan is set to lower its economic growth projections for fiscal 2025 during its April 30-May 1 policy meeting due to risks posed by U.S. tariffs.
  • The central bank is widely expected to maintain its policy rate at 0.5%, following its first rate hike in over a decade earlier this year.
  • Governor Ueda reaffirmed the BOJ's commitment to achieving a sustainable 2% inflation target but acknowledged potential delays from external shocks.
  • Internal BOJ discussions reveal uncertainty about the full economic impact of U.S. tariffs, with outcomes partly contingent on ongoing bilateral negotiations for exemptions.
  • Upcoming remarks from BOJ board member Junko Nakagawa may provide further insights into the bank's stance on tariff-related risks and monetary policy adjustments.