According to Jin Ten data, Capital Economics stated that the lack of clarity regarding tariffs may delay the Bank of Japan's tightening of monetary policy. If Tokyo and Washington reach an agreement to avoid the threat of a 25% tariff, the reasons for the Bank of Japan to raise interest rates in October remain unchanged.
The current inflation rate is higher than the Bank of Japan's May forecast, and the Japanese economy is performing reasonably well. However, economist Marcel Thieliant stated that if negotiations are prolonged or tariffs are significantly increased, it could persuade the central bank to delay interest rate hikes until next year.