BOJ Hints at Rising Cautiousness Over Tariffs as Rate Bets Wane

A Bank of Japan report based on input from branch managers conveyed increasing caution over the potential impact on the global economy from escalating trade tensions, giving traders further incentive to pare bets on rate hikes.

“Many managers reported that they will carefully monitor developments closely as a branch,” according to the quarterly summary of branch managers’ views released Monday. “There were voices from businesses citing concerns about potential impacts on production and profitability from trade policies.”