Majority of Japanese companies back suspension of interest rate hikes

Nearly two-thirds of Japanese companies have expressed support for temporarily halting the central bank's interest rate hikes. According to a Reuters business survey, they believe that the current rate policy under US President Donald Trump is exacerbating pressure on the earnings of international firms.

The GDP report revealed the Japanese economy contracted for the first time in a year, underscoring the fragile nature of its recovery amid the import duties enacted by the US administration. 

Around 65% of the people Reuters asked spoke in favor of the Bank of Japan (BOJ) suspending monetary tightening. In contrast, 10% supported lowering interest rates, while 25% advocated for further hikes in borrowing costs.

A manager from a national services company commented on the unpredictable outcome of the trade negotiations between Japan and the US. An electronics firm employee also mentioned the negative impact of Trump's tariffs on key export-oriented sectors of the economy.