Bloomberg with a piece citing an ex-BOJ official. The Bank of Japan is likely to hold off on further rate hikes for now amid growing uncertainty from U.S. trade policy, according to former BOJ executive director Kenzo Yamamoto.
Speaking ahead of U.S.-Japan trade talks, Yamamoto said, “They will be in a wait-and-see mode for a while,” pointing to the unclear scope of a 90-day tariff reprieve and the need to observe how negotiations unfold.
With Japan’s economy vulnerable to shocks from rising U.S. tariffs and a strengthening yen, the BOJ is seen as reluctant to tighten further in the near term.
Yamamoto warned that the recent 10% rise in the yen could squeeze export profits and weigh on business investment and wages.
While inflation has exceeded 2% since 2022, the BOJ continues to defend its slow pace of policy normalisation, insisting the inflation trend remains uncertain
