Former Chief Economist of the Bank of Japan: October Interest Rate Stance Difficult to Decide

Jinse Finance reported that former Bank of Japan chief economist Toshitaka Sekine stated that the market's increasing speculation about a possible rate hike by the Bank of Japan in October underestimates the degree of uncertainty brought about by Trump's tariff policies. He said: "What I want to say is that the uncertainty may be greater than market participants imagine. If I were still the chief economist of the Bank of Japan, and I was asked to determine the potential impact of tariffs before October, I would say 'no'." Prior to Sekine's remarks, signs of economic recovery had prompted economists to list October as the most likely timing for the Bank of Japan's next rate hike. The veteran economist said he would not completely rule out the possibility of a rate hike, as a range of factors, including exchange rates, would influence the decision. However, it is difficult for authorities to assert that by then, economic risks will have fully subsided. (Golden Ten Data)