Analyst: The U.S. car tariffs have reduced the possibility of Japan's central bank raising interest rates in May

An observer from the Bank of Japan stated that the new auto tariff measures announced by US President Trump have greatly reduced the possibility of a rate hike at the Bank of Japan's May meeting. Atsushi Takeda, Chief Economist at Itochu Research Institute, said, "The likelihood of a rate hike in May is even lower now. The Bank of Japan must carefully study the impact of tariffs on the economy. They cannot complete this task before their meeting in May." As America announces these measures, The Bank of Japan is looking for suitable opportunities to raise interest rates as consumer inflation continues to hover above target levels. A 25% tariff will put pressure on Japan's core economic sector - its automobile industry and could potentially affect wider industries. Katsutoshi Inadome, Senior Strategist at Sumitomo Mitsui Trust Asset Management said: "US auto tariffs are not conducive to an early rate hike by the Bank of Japan; long-term interest rates may drop below 1.5%." (Jin Shi)