Good evening r/japan. This is Yasumi from Nikkei Asia's audience engagement team. I thought this latest article on Bank of Japan may interest this community, so I wanted to share an excerpt:
TOKYO — The Bank of Japan is expected to hold interest rates steady at its monetary policy meeting this week, Nikkei has learned, as the central bank continues to mull the effects of U.S. tariffs on wages, business investment and the domestic economy.
The BOJ will hold a two-day board meeting on Sept. 18 and 19, at which it will likely keep its uncollateralized overnight call rate at 0.5%. It last raised rates by 25 basis points to 0.5% in January. If it stands pat, it will be the fifth straight meeting at which the BOJ has kept rates unchanged.
Policy board members have widely expressed the view that it is too soon to raise interest rates, according to sources. Investors also largely expect the BOJ to hold rates steady.
Following a trade deal between Japan and the U.S., the BOJ is looking closely at how major exporters such as automakers, revise their earnings outlooks. During his speech to business leaders earlier this month, Deputy Gov. Ryozo Himino said that effect of U.S. tariffs should continue to be monitored, adding, "At the moment, the risk of a larger-than-expected impact may deserve greater attention."
by NikkeiAsia