Investing.com-- The Bank of Japan is likely to cut its economic growth forecast at its upcoming April 30–May 1 policy meeting, as U.S. President Donald Trump’s tariffs cast a shadow over Japan’s export-driven recovery, Reuters reported on Thursday, citing sources familiar with the central bank’s plans.
The BOJ is expected to maintain its benchmark interest rate at 0.5% amid global market volatility, holding off on further hikes as trade tensions cloud the outlook, the Reuters report stated.
Its quarterly report, due May 1, is expected to revise down the fiscal 2025 growth projection from the current 1.1% estimate, Reuters reported.
While BOJ Governor Kazuo Ueda reaffirmed in a recent interview that rate increases will proceed at an appropriate pace, the board remains divided on the scale of impact from Trump’s tariffs, which may delay—but not derail—the path to its 2% inflation target, the report added.