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Bank of Japan: If the impact of U.S. tariffs is limited, it may resume interest rate hikes before the end of the year.
According to Jin10, the Bank of Japan announced on Friday the summary of opinions from the July monetary policy meeting, where a committee member stated that if the impact of U.S. tariffs on the economy proves to be small, the Bank of Japan may end its current wait-and-see mode and resume interest rate hikes before the end of this year. Another committee member pointed out that the Bank of Japan’s policy interest rate is currently 0.5%, below the level considered neutral for the economy, so the Central Bank must continue to raise interest rates.