Is the Bank of Japan policy board ‘split’ on when to hike rates again? Eamonn Sheridan Forexlive RSS Breaking News Feed

I posted a summary of the Bank of Japan March meeting minutes here earlier:

• BoJ minutes: Bank will raise rates if economic and price projections realised

In that post you’ll find some points being made in favour of staying on hold, and other points being made saying the Bank needs to able to respond quickly if needed.

Reuters have summarised the minutes and say this divergence is views is a split.

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BOJ Split Over Next Rate Hike Amid U.S. Tariff Uncertainty

Summary:

Bank of Japan policymakers were divided in March on when to raise rates again, as escalating U.S. tariff risks threatened Japan’s economic outlook.

While some called for caution, others argued the BOJ might still need to act decisively despite global uncertainties.

Key Points:

• BOJ minutes reveal division over the pace of future rate hikes.

• U.S. tariff policies are seen as a key downside risk to Japan’s economy.

• Some BOJ members urge caution in tightening policy further.

• Others believe decisive action may be necessary regardless of global risks.

• The debate underscores rising pressure on Japan’s monetary strategy.

***

I think ‘split’ is too strong a description. I think ‘caution’ and ‘decisive action may be necessary regardless of global risks’ are not, at this time, a split. The overall message from the minutes, and from subsequent BoJ communication, is that there is still time to watch and wait.

This article was written by Eamonn Sheridan at www.forexlive.com.I posted a summary of the Bank of Japan March meeting minutes here earlier:BoJ minutes: Bank will raise rates if economic and price projections realisedIn that post you’ll find some points being made in favour of staying on hold, and other points being made saying the Bank needs to able to respond quickly if needed. Reuters have summarised the minutes and say this divergence is views is a split. ***BOJ Split Over Next Rate Hike Amid U.S. Tariff Uncertainty

Summary:

Bank of Japan policymakers were divided in March on when to raise rates again, as escalating U.S. tariff risks threatened Japan’s economic outlook.

While some called for caution, others argued the BOJ might still need to act decisively despite global uncertainties.

Key Points:

• BOJ minutes reveal division over the pace of future rate hikes.

• U.S. tariff policies are seen as a key downside risk to Japan’s economy.

• Some BOJ members urge caution in tightening policy further.

• Others believe decisive action may be necessary regardless of global risks.

• The debate underscores rising pressure on Japan’s monetary strategy.***I think ‘split’ is too strong a description. I think ‘caution’ and ‘decisive action may be necessary regardless of global risks’ are not, at this time, a split. The overall message from the minutes, and from subsequent BoJ communication, is that there is still time to watch and wait.
This article was written by Eamonn Sheridan at www.forexlive.com.  Read MoreCentral Banks 

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