BOJ May Be Forced to Raise Rates Early after Trump's Win

   Tokyo, Nov. 7 (Jiji Press)--The Bank of Japan may face pressure from a weaker yen and higher import prices and be forced to raise interest rates at an early date following Donald Trump's victory in the U.S. presidential election, economists said.
   The dollar is expected to rise further against the yen if the U.S. Federal Reserve slows the pace of interest rate cuts due to a possible resurgence of inflation in the United States after Trump's return to the White House.
   Trump's campaign pledges included measures expected to ignite inflation, including tax cuts, higher tariffs and tighter immigration controls that would push up labor costs.
   The Fed started cutting interest rates in September after inflation cooled. But "if Trump's return to the White House lifts the U.S. economy, it may be necessary for the Fed to raise interest rates," a Japanese economist said.
   In September, BOJ Governor Kazuo Ueda said the Japanese central bank has plenty of time to decide whether to raise interest rates as it needs to see whether the U.S. economy will achieve a soft landing. In October, he said that such a stance is no longer necessary, given a spate of upbeat U.S. economic data.

(2024/11/07-11:58)

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