Bank of Japan Governor: If U.S. tariffs harm the economy, the Central Bank may need to respond.

According to ChainCatcher news, Jin10 cites a report from the Nihon Keizai Shimbun, stating that Bank of Japan Governor Kazuo Ueda indicated that if U.S. tariffs harm the Japanese economy, the Central Bank may need to take policy action, suggesting that the Central Bank might pause its interest rate hike cycle. Kazuo Ueda said the risks surrounding US President Donald Trump's policies have been "closer to" the bad scenario envisioned by the Bank of Japan since February, adding that recent developments have affected the confidence of businesses and households. He said the Bank will continue to raise interest rates "at an appropriate pace" if economic and price developments are consistent with the BOJ's forecasts. "But we will scrutinize the extent to which U.S. tariffs could hurt the economy without preconceptions," he said. "A policy response may be necessary. We will make appropriate decisions according to the changes in the state of affairs. "The remarks reinforced the prevailing view in the market that the BOJ will hold off on rate hikes at its next policy meeting from April 30 to May 1, with the current rate at 0.5%.