Overview

• Takata said the BOJ’s pause in its rate-hike cycle was temporary and advocated resuming increases after a period of “wait and see” to assess US tariff impacts.
• He highlighted that Japan’s inflation was nearing the bank’s 2% target on the back of robust corporate profits and labour shortages driving up wages.
• Takata warned that sweeping reciprocal tariffs proposed by President Trump, potentially as high as 35%, posed risks to export momentum.
• He urged the central bank to maintain a flexible, data-dependent approach without leaning too pessimistic on external uncertainties.
• No timeline for the next hike was set, reflecting a cautious stance amid global market divergences and yen considerations.