Bank of Japan likely to continue interest rate hikes despite U.S. tariffs - report

Investing.com -- The Bank of Japan (BOJ) is reportedly planning to indicate next week that the potential impact of increased U.S. tariffs will not disrupt the ongoing cycle of wage growth and inflation, which is deemed essential for continued interest rate increases.

This stance is expected to be included in the BOJ's quarterly outlook report, which is due on May 1, Reuters reported on Monday, citing sources.

According to the report, it is currently difficult to accurately estimate the potential harm to the economy that could result from U.S. President Donald Trump's tariffs.

However, it is clear that the growing scarcity of workers will compel Japanese companies to continue raising wages.

The report also said that while risks have indeed increased, they are not yet significant enough to necessitate a complete revision of the BOJ's baseline scenario, which predicts a moderate economic recovery.