The Bank of Japan maintains its stance on interest rate hikes but hints at pausing actions to address the risks of U.S. tariffs

Bank of Japan Governor Kazuo Ueda hinted that interest rate hikes may be paused due to the risks of U.S. tariffs. Although Japan's underlying inflation is gradually accelerating and the economic conditions are generally in line with expectations, attention must be paid to the uncertainties brought about by trade policies. The central bank is expected to maintain the interest rate at 0.5% during the meeting from April 30 to May 1 and release new quarterly economic forecasts. Most economists believe that Trump's tariffs will impact Japan's economic growth and predict that the Bank of Japan will raise interest rates again in the second half of the year