key takeaways
- The Bank of Japan (BOJ) left interest rates unchanged at its 18-19 December policy board meeting, as Governor Ueda Kazuo pointed to pronounced uncertainty about the impact the incoming US administration could have on Japan’s economy, particularly on the outlook for wage negotiations.
- Ueda continues to see room for additional rate hikes but refused to commit to a timeline.
- If the divergence between the BOJ and Federal Reserve triggers prolonged yen weakness, however, the bank could face greater domestic political pressure in 2025.
Japan Foresight 