Former BOJ Board Member: “Trump Tariffs Halted Japan’s Rate Hikes… Next Year Is an Economic Test”

It has been claimed that US President Donald Trump’s tariff policies effectively halted the Bank of Japan (BOJ)’s tightening cycle.

According to Odaily, a media outlet specializing in cryptocurrencies, on the 12th (local time), Takako Masai, a former BOJ Policy Board member, stated, “President Trump’s tariff policies may have brought an end to the Bank of Japan’s interest rate hike cycle.”

Former board member Masai noted, “With expected hits to export sectors including automobiles, the likelihood of additional rate hikes has sharply decreased,” adding, “Uncertainty over US trade policy is causing serious turmoil across the entire global economy.”

She added, “All of Japan’s exports, production, wages, and consumption may come under pressure, and Japan, with its large automobile industry, is inevitably more sensitive to the US auto tariffs.”

She further predicted, “The impact from US tariffs will begin in earnest in six to twelve months, and the true test for the Japanese economy could come in 2026.” She also forecast that, “The Bank of Japan may find it difficult to pursue additional rate hikes for a considerable period.”