Articles in this Cluster
01-05-2025
The Bank of Japan kept its policy rate at 0.5% for a second straight meeting, citing risks from U.S. President Trump’s new tariffs that threaten Japan’s exports and growth. While inflation has exceeded the 2% target for three years, the BOJ said it will only raise rates further if its economic and price forecasts hold. It expects inflation at 2–2.5% in FY2025, 1.5–2% in FY2026, and around 2% in FY2027, with growth likely to moderate amid weaker global demand and lower corporate profits. Markets reacted modestly: the Nikkei rose, Topix edged up, and the yen weakened slightly against the dollar. Analysts see limited urgency for hikes given tariff risks, with Citi projecting the next hike in March 2026.
Entities: Bank of Japan, policy rate 0.5%, U.S. President Donald Trump, tariffs, Japan exports • Tone: analytical • Sentiment: neutral • Intent: inform
01-05-2025
The Bank of Japan cut its 2025 GDP growth forecast to 0.5% from 1.1% and its 2026 outlook to 0.7% from 1.0%, citing uncertainty and slowing global demand tied to escalating trade tensions. The BOJ warned that trade policies are depressing overseas economies and domestic corporate profits, clouding the outlook. The downgrade follows signs of broader trade-war fallout: a slight US contraction in Q1 due to trade dynamics and a sharp contraction in China’s factory activity. While the Trump administration claims “potential” trade deals with allies like Japan, details are unclear and swift agreements are unlikely.
Entities: Bank of Japan, GDP growth forecast, trade war, global demand, United States economy • Tone: analytical • Sentiment: negative • Intent: inform
01-05-2025
On his 100th day, President Trump touted a “golden age” driven by tariffs, but soon acknowledged consumers may face higher prices and supply disruptions, using pricier toys as an example. With GDP data weakening and inflation headwinds looming, the White House is under pressure to deliver quick economic wins, especially new trade deals with countries like India, Japan, and South Korea to offset tariff impacts. Officials argue the strategy is a mid- to long-term overhaul of the trade system, paired with moves to make 2017 tax cuts permanent by early July. While Trump continues to blame economic woes on President Biden, anxiety is building among businesses and some supporters, prompting intensified messaging and a push for rapid agreements to stabilize sentiment and prices.
Entities: White House, President Trump, tariffs, trade deals, India • Tone: analytical • Sentiment: neutral • Intent: inform
01-05-2025
Japan’s central bank slashed its growth forecast for the fiscal year to 0.5% from 1.1%, citing U.S. tariffs under President Trump as a key drag via weaker overseas demand and falling corporate profits. The Bank of Japan kept rates at 0.5% and trimmed its core inflation outlook to 2.2% from 2.4%, as tariffs—especially a 25% levy on imported cars and potential broader 24% tariffs—hit exporters and firms like Uniqlo. The tariff shock compounds Japan’s weak consumption and complicates the BOJ’s path toward further rate hikes. Globally, the IMF has cut 2025 outlooks for G7 economies, U.S. GDP shrank in Q1, and Chinese manufacturing slowed, underscoring broader tariff-related headwinds.
Entities: Bank of Japan, Japan, U.S. tariffs, Donald Trump, Uniqlo • Tone: analytical • Sentiment: negative • Intent: inform
