Bank of Japan to maintain hawkish stance despite pressure from Trump’s tariff policy — Reuters

Reuters' informed sources said that the Bank of Japan (BOJ) maintains a hawkish stance on monetary policy, despite the negative impact of Donald Trump's import tariffs on the country's economy. According to the agency, the precise effect of the US trade restrictions on Japan's GDP is still unclear, and the officials plan to support market expectations for an interest rate hike. However, this move may only happen in several months, the agency added.

The new US President's tariffs have undoubtedly posed a threat to one of Asia's leading economies. However, Reuters' sources believe that the risk is not yet significant enough for the BOJ to reconsider its policy. The country's wage growth and inflation cycle should not be disrupted, therefore, rate hikes will remain on hold, the agency stated.

The regulator's next meeting is scheduled for April 30. Japanese officials are unlikely to adjust the cost of borrowing, but may highlight heightened risks due to Trump's actions, while affirming their general course of monetary policy. Such predictions are shared by Reuters sources.