Former BOJ Board Member: “Trump Tariffs Halted Japan’s Rate Hikes… Next Year Is an Economic Test”
Summary
- Former BOJ Policy Board member Takako Masai stated that President Trump’s tariff policies may have halted the BOJ’s rate hike cycle.
- She noted that with expected impacts on the automobile industry and export sectors, the likelihood of additional rate hikes has dropped sharply.
- She predicted that the shock from US tariffs could begin to materialize in six to twelve months, with 2026 potentially being an economic proving ground for Japan.
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.”
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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