Bank of Japan Governor: If US tariffs harm the economy, monetary policy may need to be adjusted.

According to the Gate.io News bot, as reported by Jin10 from the Nihon Keizai Shimbun, Bank of Japan Governor Kazuo Ueda pointed out that if the U.S. tariff policy harms the Japanese economy, the Central Bank may need to take corresponding policy measures, suggesting a possible pause in the current interest rate hike process.

Kazuo Ueda said the risks surrounding US President Donald Trump’s policies have been “closer” to the bad scenario expected by the Bank of Japan since February, noting that recent developments have affected business and household confidence. He stressed that if the economy and price movements are in line with the central bank’s expectations, interest rate hikes will continue to be pushed forward “at an appropriate pace”. But at the same time, he said: “We will objectively assess the extent of the damage that the U.S. tariffs are likely to cause to the economy, and will take policy responses if necessary.” We will make appropriate decisions as the situation evolves. The statement reinforced consensus expectations that the Bank of Japan (BOJ) may pause rate hikes at its next policy meeting from April 30 to May 1, which is currently at 0.5%.