TOKYO (Reuters) – The Bank of Japan (BOJ) opted to keep interest rates unchanged during its latest policy meeting, citing concerns over global economic instability and the potential impact of higher U.S. tariffs. The central bank emphasized that the timing of future rate hikes will depend on economic developments both domestically and internationally.
BOJ Monitors Inflation and Wage Growth
Governor Kazuo Ueda highlighted that Japan’s rising food prices and stronger-than-expected wage growth could contribute to higher underlying inflation. While the BOJ acknowledges domestic price pressures, it remains cautious about the broader global economic landscape.
“Japan’s wage and price conditions are progressing as expected, possibly even stronger than anticipated. However, with growing uncertainties in the U.S. and global markets, it is difficult to assess the full impact on Japan’s economy,” Ueda stated during a press conference.
Outlook on Future Rate Hikes
Despite the cautious stance, Ueda signaled that the BOJ does not necessarily need to wait until the effects of U.S. tariffs are fully realized before adjusting monetary policy. The central bank plans to reassess economic data in early April, which could influence the timeline for potential interest rate hikes.
As Japan navigates both domestic inflationary pressures and global economic risks, the BOJ’s next policy moves will be closely watched by markets and analysts.
For more updates please visit https://zamaexpress.com.