Compass Investments

The Bank of Japan (BOJ) may lower rates today or tomorrow due to rising inflation and global instability.

Trump’s new tariffs delay future rate hikes until at least January 2026.

Japan is cutting back on bond purchases and actively recruiting foreign investors to fill a $10 billion financing gap.

The Bank of Japan is expected to cut interest rates today or tomorrow as domestic pressure mounts and global chaos grows.

Inflation expectations in Japan have risen again in the past three months, according to a BOJ survey released Friday. 86.7% of households now predict prices will rise within a year.

This is the highest since June 2024, and up from 85.7% in December. Such expectations are one of the reasons the central bank has been leaning toward raising rather than lowering rates. But that won’t happen again – not now.

The same survey shows that companies in Japan are finally starting to raise wages and prices, something the BOJ has been waiting years to do. The data suggests that the conditions for interest rate hikes are beginning to form.

But analysts say another factor now stands in the way as President Donald Trump, back in the White House, launches a new round of tariffs, renewing fears of a global recession.

This fear is one of the main reasons why the Bank of Japan is expected to cut rates rather than raise them again, which, as you may recall, crashed all markets on that fateful day of August 5, 2024.

And now stocks and cryptocurrencies are falling thanks to Trump. Bitcoin is still trying to regain $100,000 and the S