Former Bank of Japan Board Member Takako Masai: Trump Tariffs Have Halted the BOJ Rate Hike Cycle
Former Bank of Japan board member Takako Masai said on Thursday that U.S. President Trump’s tariffs may have already brought an end to the BOJ’s rate hike cycle, as the likelihood of further increases is rapidly diminishing due to expected hits to exports. Masai, who remains in close contact with current policymakers, noted that uncertainty surrounding U.S. trade policy is causing significant disruption to the global economy, which could negatively impact Japan’s exports, output, wage growth, and consumption. Given the major role the auto industry plays in Japan’s economy, U.S. auto tariffs are particularly damaging. She stated, “The real test for Japan’s economy may come in 2026,” as the effects of U.S. tariffs will begin to show in six to twelve months. “The Bank of Japan may be unable to raise rates for quite some time,” she said. (Jin10)
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