Economist: Trump's economic policies remain the main risk to Bank of Japan rate hikes

Odaily News Harumi Taguchi, an economist at S&P Global Market Intelligence, said U.S. President Donald Trump's economic policies are likely to remain the main risk to the Bank of Japan's path to raising interest rates. "Increased trade barriers could limit global trade, which could lead to lower corporate profits and limit domestic investment and wage growth," he said. "If concerns about protectionism spark risk aversion and lead to an appreciation of the yen, the Bank of Japan may delay raising interest rates." Taguchi expects the Bank of Japan to raise interest rates to 0.75% in September once it confirms trends in wage growth and seasonal bonuses. (Jinshi)