- But would expect underlying inflation to gradually pick up eventually
- Expect inflation, wage growth to slow down due to tariffs, slower growth
- Outlook is not as certain as it was before
- Timing of underlying inflation to achieve 2% goal will be somewhat delayed
- Appropriate to support the economy while maintaining easy monetary environment
- Will guide policy from a standpoint of sustainably, stably achieving price target
The remarks on slower growth and softer price pressures are aimed to justify the pause today and perhaps in June as well. It’s no doubt a more dovish take. Analysts are largely seeing Q3 as the next point in which the BOJ will hike next. But we’ll have to see how the narrative changes depending on Trump’s tariffs as well in the weeks/months ahead.
This article was written by Justin Low at www.forexlive.com.
