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Analysis-BOJ's message: Food inflation can't be ignored even as Trump tariffs raise risks [Yahoo! Finance]

Mitsubishi UFJ Financial Group, Inc. (MUFG) 
Company Research Source: Yahoo! Finance
on the need to remain vigilant on food-driven inflationary pressures had an important takeaway: Rates could be raised sooner than expected. As with many other central banks, the Trump administration's broad tariffs against its trading partners have raised uncertainty for Japan's monetary path as policymakers tread cautiously while they try to assess the economic implications of the rapid-fire bursts of U.S. duties. All the same, growing signs of sticky food inflation, which adds to prospects of sustained wage increases, will likely keep the BOJ on course to raise rates at a steady pace in contrast with more rate cuts signalled by its U.S. and European counterparts. Highlighting a problem that many major central banks are grappling with, BOJ Governor Kazuo Ueda warned of heightened uncertainty over how higher U.S. tariffs could affect the global economy, in explaining the bank's decision to keep interest rates steady on Wednesday. But the BOJ can incorporate to some extent the Show less Read more
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