Former Bank of Japan member Takako Masai: Trump's tariffs have halted the Bank of Japan's rate hike cycle
a day ago
Odaily News U.S. President Donald Trump’s tariffs may have brought the Bank of Japan’s rate hike cycle to an end, and the likelihood of further increases is falling rapidly as exports are expected to take a hit, former Bank of Japan board member Takako Masai said on Thursday. Uncertainty over U.S. trade policy is causing huge disruptions to the global economy, which could hit Japan’s exports, output, wage growth and consumption, said Masai, who maintains close ties with current policymakers. U.S. auto tariffs are particularly damaging because of the huge role the auto industry plays in Japan’s economy. She said the “real test for the Japanese economy may come in 2026” because the impact of U.S. tariffs will begin to show in six to 12 months. “The Bank of Japan may not be able to raise interest rates for quite some time,” she said. (Jinshi Data APP)
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