Bank of Japan set to discuss economic risks associated with Trump's trade policy

According to Reuters, the Bank of Japan (BOJ) is expected to keep interest rates unchanged at its meeting next week. The regulator is also supposed to discuss the risks to the country's export-driven economy posed by trade barriers on the part of the United States. As journalists of the agency believe, it will determine the future path of the Japanese central bank's monetary policy.

In addition, market participants will focus their attention on the regulator's governor Kazuo Ueda's speech after the meeting. His comments might give clues regarding future plans for rate hikes.

According to an insider close to the BOJ officials who spoke to Reuters, Japan's economic growth and price dynamics are going according to plans, but external risks have increased.

This week, major Japanese companies raised wages for the third consecutive time following talks with labor unions. The move echoes the view of the BOJ officials, who believe the wage hikes will keep inflation near the 2% target.

According to Reuters sources, many BOJ officials have noted the increased risks to the price outlook as core inflation rose to a two-year high at 4% in January.