The Bank of Japan's interest rate hike path encounters obstacles, and U.S. tariff policies remain the biggest hindrance

Members of the Bank of Japan's Policy Board expressed their intention to further raise interest rates, but cautioned about the impact of U.S. tariff policies on the economy. The meeting minutes indicated that although real interest rates are low and the price target is expected to be achieved, the central bank's stance on interest rate hikes remains unchanged, but the outlook for economic activity and prices may be revised due to developments. The Japanese stock market rose, and the strengthening dollar led to a decline in the yen exchange rate. Most observers have pushed back the timing of the next interest rate hike to later this year or 2026