Institution: The uncertainty of tariffs and risks faced by economic growth will temporarily keep the Bank of Japan on hold.

The IG Group stated that the lack of progress in US-Japan trade negotiations continues to cast a shadow over Japan's economic outlook, complicating the path to normalization of the Bank of Japan's policies. With tariff uncertainty and economic growth risks persisting, policymakers may remain hesitant to take action. The focus will be on the latest economic forecasts. Due to the risks faced by Japan's export-oriented economy, GDP growth expectations for this year may be revised downward. Meanwhile, the potential inflationary pressures that have been rising in recent months may pose upside risks to the inflation outlook of the Bank of Japan. However, wage growth exceeding inflation could provide confidence for further policy tightening.