Bank of Japan’s Nakagawa says uncertainties remain high over impact of US tariff policy

Published Thu, Aug 28, 2025 · 11:16 AM

Bank of Japan board member Junko Nakagawa said on Thursday that uncertainties remain high over US tariff policies and their impact on the Japanese and global economy.

Nakagawa also underscored the importance of the results from the BOJ’s upcoming “tankan” business sentiment survey that would reflect the impact of trade negotiations among major economies.

In light of the economic uncertainties, the central bank will continue to carefully assess data and make monetary policy decisions appropriately, Nakagawa in a speech posted on the BOJ’s website.

Formerly chairperson of Japan’s Nomura Asset Management, Nakagawa is considered by markets as neutral in her stance on monetary policy.

After exiting a massive, decade-long stimulus last year, the BOJ raised interest rates to 0.5 per cent in January on the view Japan was on the cusp of durably achieving its 2 per cent inflation target.

The BOJ kept rates steady in July but revised up its inflation forecasts and offered a less gloomy outlook on the economy, keeping alive market expectations for a rate hike this year.

Nearly two-thirds of economists polled by Reuters in August expect the BOJ to raise its key interest rate by at least 25 basis points again later this year, up from just over half a month ago. REUTERS

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