The Bank of Japan’s rate hike cycle will resume after "only” a temporary pause, policy board member Hajime Takata warned, keeping his hawkish tone even after U.S. President Donald Trump clouded the economic outlook by threatening to impose tariffs on Japanese goods higher than those previously touted.
"I believe that the bank is currently only pausing its policy interest rate hike cycle and should continue to make a gear shift after a certain period of ‘wait and see,’” Takata said Thursday in a speech to local business leaders in Mie Prefecture.
Takata’s remarks made it clear that the BOJ is continuing to look for further opportunities to raise rates even after the prospects for a trade deal with the U.S. appeared to recede after Trump floated the idea of increasing tariffs to 35%, compared with a previous plan to hike an across-the-board duty to 24% starting next week.
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