Editorial

15:00 JST, May 6, 2025

The high-tariff policy of the administration of U.S. President Donald Trump has plunged the global economy into turmoil. The outlook for the Japanese economy is extremely uncertain as well.

The Bank of Japan needs to flexibly revise its rate hike scenario.

At its latest Monetary Policy Meeting, the central bank decided to keep the policy rate at around 0.5%. This marks the second consecutive meeting at which the rate has been left unchanged, following the March meeting.

While keeping its monetary policy unchanged, the BOJ significantly revised its economic and price outlooks, which it newly presented in response to the Trump tariffs.

The central bank revised down the growth rate outlook for fiscal 2025 by 0.6 percentage points from the January forecast to 0.5%. For fiscal........

© The Japan News