Former chief economist of the Bank of Japan: October interest rate stance is difficult to determine

The growing market speculation that the BoJ might raise interest rates in October understates the degree of uncertainty created by Mr. Trump's tariff policy, said Toshitaka Kane, a former chief economist at the Bank of Japan. "What I would say is that the uncertainty may be greater than market participants think, and if I were still the chief economist at the BoJ and asked to determine the likely impact of the tariffs by October, I would say'no '," he said. Mr. Kane's comments come after signs of an economic recovery prompted economists to list October as the most likely time for the BoJ to raise interest rates next. The veteran economist said he would not rule out a rate hike entirely because a range of factors, including the exchange rate, would influence the decision. However, it is difficult for the authorities to assert that the economic risks have sufficiently subsided by then. (Jin Ten)