Bank of Japan to refrain from raising rates amid US tariff uncertainty

The Bank of Japan (BOJ) will refrain from raising interest rates, as it assesses the uncertainty triggered by new US tariff policies.

BOJ Governor Kazuo Ueda emphasized that any decision on monetary policy adjustments requires a thorough analysis of economic conditions, inflation trends, and the broader macroeconomic environment without bias.

Ueda also added that the BOJ will raise interest rates and adjust monetary policy easing if core inflation reaches the expected 2%.

Meanwhile, the data show Japan's economy developing in line with the central bank's forecasts. Overall inflation has been above the 2% target for almost three years.

The BOJ is set to make its next monetary policy decision on May 1. Traders estimate the likelihood of a rate hike at this meeting at about 1%, while late last month this probability was estimated at 20%.