Bank of Japan governor Kazuo Ueda has said the US-Japan tariff deal was a “big step forward”, as the central bank raised its inflation forecasts, prompting speculation that it will resume its monetary tightening cycle this year.
The BoJ said on Thursday that it had unanimously decided to hold short-term interest rates at 0.5 per cent following its two-day meeting, a move widely expected by analysts.
The US and Japan last week announced a trade deal imposing 15 per cent tariffs on Japanese exports, including cars, though there is still uncertainty about how the agreement will operate.
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