The Bank of Japan is widely expected to signal a pause in policy normalization this week as U.S. tariffs heighten global uncertainty, without shifting its stance on gradually raising interest rates when the outlook clears.
Gov. Kazuo Ueda’s board is poised to keep the benchmark rate at 0.5% at the conclusion of the two-day gathering on Thursday, according to all 54 economists surveyed. BOJ watchers will scrutinize policymakers’ quarterly economic projections for any hint on the extent of the pause.
After lifting borrowing costs three times since March of last year, the central bank now faces U.S. President Donald Trump’s sweeping tariff measures and the threat they pose to Japan’s economy.
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