Former Bank of Japan member Takako Masai: Trump's tariffs have halted the Bank of Japan's rate hike cycle

Odaily Planet Daily News - Former Bank of Japan board member Takako Masai said on Thursday that U.S. President Trump's tariffs may have ended the Bank of Japan's interest rate hike cycle, and the possibility of further rate hikes is rapidly declining as exports are expected to be hit. Masai, who maintains close contact with current policymakers, said that uncertainty in U.S. trade policy is causing huge disruptions to the global economy, which may hit Japan's exports, output, wage growth and consumption. U.S. auto tariffs are particularly devastating because the auto industry plays a huge role in Japan's economy. She said, "The real test for the Japanese economy may come in 2026" because the impact of U.S. tariffs will begin to appear in 6 to 12 months. "The Bank of Japan may not be able to raise interest rates for quite some time," she said. (Jinshi)