Former Bank of Japan member Takako Sato: Trump's tariffs have already halted the Bank of Japan's interest rate hike cycle.

According to Deep Tide TechFlow news, on June 12, Jin10 reported that former Bank of Japan board member Takako Sato said on Thursday that U.S. President Trump's tariffs may have marked the end of the Bank of Japan's interest rate hike cycle. With exports expected to be impacted, the possibility of further interest rate hikes is rapidly declining. Sato, who maintains close ties with current policymakers, stated that the uncertainty of U.S. trade policy is causing significant disruption to the global economy, which could impact Japan's exports, output, wage growth, and consumption. Given the enormous role the automotive industry plays in the Japanese economy, U.S. tariffs on cars are particularly destructive. She said, "The real test for the Japanese economy may come in 2026," as the effects of U.S. tariffs are expected to emerge 6 to 12 months later. "The Bank of Japan may not be able to raise interest rates for quite some time," she stated.