Central Bank Policy

Trade Agreement Eases Uncertainty from Bank of Japan, but Inflation Challenges Persist

With Katharine Neiss, PhD — Jul 31, 2025

2 min watch

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Deputy Head of Global Economics, Katharine Neiss, PhD, reacts to the Bank of Japan’s July Monetary Policy Meeting, which saw the bank hold interest rates at 0.5% and provide valuable insight into where rates may go for the remainder of 2025. The Bank outlined what Katharine believes to be a resilient and robust Japanese macro economy, but there are three dovish factors weighing on the Bank’s mind that suggest there is no rush to hike rates, at least for the remainder of 2025.

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