The Bank of Japan (BoJ) aims to pay "close attention" to United States President Donald Trump's policies and their impact on the global economy and global financial and capital markets, a summary of opinions at the central bank's March meeting showed.
"Downside risks stemming from the United States have rapidly heightened recently and, depending on how tariff-related issues develop, it is quite possible that these risks will even have a negative impact on Japan's real economy. In that case, the Bank will need to be particularly cautious when considering the timing for raising the policy interest rate," the BoJ's summary reads.
Japan's economy is "at a stage where the price stability target is close to being achieved, mainly due to inflationary pressure stemming from domestic factors. In fiscal 2025, the Bank will enter a new phase where it needs to take this into account when communicating to the public." one opinion showed.
