Tariff speculation
Global markets face heightened uncertainty as speculation mounts over a phased US tariff strategy and the BoJ signals a potential rate hike at its next meeting.

Reports suggest the incoming US administration may implement phased tariff hikes to maximize negotiation leverage.
BoJ Deputy Governor Himino indicates a possible rate hike at the upcoming policy meeting.
US tariffs: A gradual escalation?
Reports indicate that President-elect Donald Trump’s economic team is considering a phased tariff strategy, potentially increasing rates by 2% to 5% monthly. This approach, utilizing powers under the International Emergency Economic Powers Act, aims to maximize negotiation leverage while minimizing immediate inflation risks.
Despite its potential implications, the proposal remains in its early stages and has yet to reach Trump for approval. Markets are left grappling with the uncertainty, as the possibility of tariff hikes generates mixed reactions across asset classes.
BoJ hints at rate hike
In a separate development, BoJ Deputy Governor Ryozo Himino hinted at the likelihood of a rate hike at the upcoming policy meeting. Addressing the media, Himino stated, “When the appropriate timing comes, we must shift policy without delay, as the effect of monetary policy is said to show up with a lag of one to one-and-a-half years.”
Himino stressed that the central bank does not follow a rigid checklist for rate decisions but instead focuses on a comprehensive analysis of economic and inflation outlooks. The BoJ’s quarterly outlook report, due at the meeting, will be a crucial determinant for policymakers.