Japan's BOJ will likely raise rates slower

A Reuters poll indicates the Bank of Japan (BOJ) is likely to raise interest rates in the third quarter, though at a slower pace than previously anticipated. This adjustment reflects concerns about the impact of U.S. tariffs. The survey shows a majority of economists now expect a 25-basis-point rate hike between July and September, a decrease from the previous month's forecast. The poll also revealed that nearly 90% of respondents believe the risk of a recession in Japan remains low. U.S. President Trump's tariff actions, including recent levies on Japanese goods, have created uncertainty. Despite these disruptions, the BOJ is expected to maintain its path toward slightly tighter monetary conditions, according to the poll.