- Japan’s economy is recovery moderately, although some weakness is still seen
- Economic growth likely to moderate
- Economic, price projections could change vastly depending on how countries deal with US tariffs
- Must pay due attention to financial, FX markets and impact to Japan’s economy, prices
- Expected to keep raising rates if economy, prices move in line with projections
The key guidance of expecting to stick with rate hikes if the economic and inflation outlook plays out accordingly is still there, but there’s now dovish elements introduced in the assessment towards the economy at least. It isn’t all too surprising though with Trump tariffs becoming a negative drag towards the global outlook. But in the case of the BOJ, it does dampen the spirits of pushing too hawkishly on hiking rates. From before: Economists now more split on next BOJ rate hike – poll
This article was written by Justin Low at www.forexlive.com.
