Faced with tariff uncertainty, the Bank of Japan has not given up on interest rate hikes

Source: Xinhua Finance

Xinhua Finance, Beijing, May 13 (Xinhua) -- Summary of the comments of members of the Bank of Japan's review of the monetary policy meeting in April showed that although they became more cautious about the potential impact of U.S. tariffs, they did not give up further interest rate hikes.

At the meeting from April 30 to May 1, a committee member said, "The central bank needs to wait and see until the progress of U.S. tariff policy is determined." One committee member said, "As the U.S. economy slows down, the Bank of Japan will enter the stage of suspending policy interest rate hikes, but it should not be too pessimistic," the committee member added, "There is a need to implement monetary policy in a flexible and more flexible way, such as further raising policy rates in accordance with U.S. policy changes."

Another committee member also said that the most important factor in achieving inflation targets is the wage and price setting behavior of enterprises, as well as inflation expectations for enterprises and households. The committee member said the risk of the Japanese economy returning to a state of limited wages and price growth is minimal.

Bank of Japan Governor Kazuo Ueda previously said he still expects the underlying inflation rate to reach the Bank of Japan's target of 2%, but that may take longer than expected.

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