Bank of Japan Expresses Concern Over US Tariff Impact

Bank of Japan Governor Kazuo Ueda highlighted the potential disruptions to service inflation and the challenges in price pass-through due to the US tariff policies under President Donald Trump. During a recent press conference, Ueda elaborated on how these policies could distort Japan's price dynamics, adding complexity to the central bank's policy outlook.

Current Stance on Rate Hikes

Ueda clarified that the Bank of Japan has no immediate plans to hike rates, given the current stagnation in price trends. However, he left room for adjustment, suggesting that a reduction or elimination of Trump's tariffs could pave the way for a quicker rate increase.