Nomura claims that the US trade stance has put the Bank of Japan in a "difficult position".

Nomura International said that Bank of Japan Governor Haruhiko Kuroda's dovish policy stance reflects a shift in policy focus from domestic issues to the potential impact of trade tariffs. "The Bank of Japan had previously focused more on domestic inflation issues such as food prices, other services, and inflation," said Nomura foreign exchange strategist Yusuke Miyairi. "But now it is paying more attention to international trade." "Kuroda is trying to strike a balance by stating that the Bank of Japan can raise rates even if inflation does not reach 2%, but his confidence is not as strong as it was in March," Miyairi said. "Raising rates now could raise the exchange rate, but it could also worsen the economy and prices."