The Bank of Japan will probably leave aside raising interest rates for now due to uncertainties stemming from U.S. tariff measures that could deal a blow to Japan’s economy, according to a former executive director.
"They will be in a wait-and-see mode for a while,” Kenzo Yamamoto, the former executive, said in an interview Monday. "We don’t know if it’s really a 90 day pause, but the BOJ probably wants to see how the talks will proceed with U.S.”
Yamamoto spoke ahead of U.S.-Japan trade talks set to kick off this week after President Donald Trump’s tariff announcements shocked policymakers and markets around the world earlier this month. Among key discussion topics traders will be watching is how the two nations talk about the yen, which rose to a six-month high against the U.S. dollar this week.
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