BoJ unanimously holds interest rates steady as Trump trade war forces caution

‘Evolving situation regarding trade and other policies’

Eve Maddock-Jones
clock • 1 min read

The Bank of Japan voted to hold interest rates steady at 0.5%, opting for caution amid rising geopolitical tensions stemming from the US.

In a unanimous decision, the BoJ said that while its economy had recovered "moderately", it had seen "some weaknesses", with exports and industrial production coming in "more or less flat". The Big Question: Can Donald Trump's stance on tariffs work alongside US stock market growth? This was the same with public investment and the Bank said "financial conditions have been accommodative". However, while monetary factors within the country had been relatively stable, factors outside the country were more "concerning risks" to Japan's economic outlook. Namely, "...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Sticky inflation dampens Bank of England's rate cutting prospects

Sticky inflation dampens Bank of England's rate cutting prospects

MPC to meet on Thursday

Linus Uhlig
clock 18 June 2025 • 3 min read
Tariffs drive record fall in UK exports to US

Tariffs drive record fall in UK exports to US

Imports fall by £400m

Linus Uhlig
clock 12 June 2025 • 2 min read
Partner Insight: What are the implications of policies of the Trump Administration on EMD?

Partner Insight: What are the implications of policies of the Trump Administration on EMD?

Matthew Murphy, Institutional Portfolio Manager of the Emerging Markets Team at Morgan Stanley Investment Management (MSIM), shared his view on the implications of the policies introduced by the Trump Administration for emerging market debt (EMD). Murphy then explained the firm’s approach to the EMD segment.

Matthew Murphy, Institutional Portfolio Manager of the Emerging Markets Team at Morgan Stanley Investment Management (MSIM)
clock 12 June 2025 • 7 min read
Trustpilot