Reported 2 days ago
The Bank of Japan is expected to refrain from raising interest rates this year due to its recent pessimistic economic projections, which include stagnant inflation and reduced growth forecasts affected by U.S. tariffs. Former chief economist Seisaku Kameda indicated that only a significant improvement in U.S. trade negotiations could prompt a reassessment of these forecasts, which currently predict a rise in core consumer inflation to 2.2% by March 2026, before declining. As Japan navigates a delicate economic recovery, Kameda suggests any potential rate hikes might be postponed until early next year.
Source: YAHOO