The Bank of Japan plans to increase interest rates despite the threats posed by potential US tariffs. Shinichi Uchida, the Deputy Governor, emphasizes that rising wages and prices are anticipated, indicating a continued drive towards monetary tightening.
While some members of the BOJ board foresee possible rate hikes following a brief pause, they remain optimistic yet cautious about the economic environment. The goal of reaching a 2% inflation rate remains unchanged, emphasizing a flexible monetary policy in response to market conditions.
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