Bank of Japan board members have signaled their intention for further rate hikes while citing the need to stay vigilant due to the potential economic impacts from U.S. tariff measures, according to a summary of opinions from their April 30 to May 1 meeting, Bloomberg News reported. "The bank’s stance to continue to raise the policy interest rate is unchanged” given low real rates and the outlook for its price goal to be met, one of the nine board members said at the gathering, according to the summary released Tuesday, which doesn’t disclose speakers’ identities.
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The number of corporate bankruptcies with debts of at least ¥10 million in Japan totaled 828 in April, the highest level in 11 years for the reporting month, amid inflation and rising labor costs, Tokyo Shoko Research said on Monday, the Japan Times reported. The monthly figure rose 5.7% from a year before. More failures were seen mainly among smaller companies with weak business bases as their revenue was squeezed by rising prices and higher labor costs amid labor shortages.
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Household spending in fiscal 2024, which ended in March, dropped 0.1% from the previous year in price-adjusted real terms, down for the second straight year, the internal affairs ministry said Friday, the Japan Times reported. The average monthly consumption expenditure of households consisting of two or more members stood at ¥304,178 ($2,094). The decrease reflects sustained inflation, which is making consumers more budget-minded on food. Spending on food fell 1.0% mainly because consumers tended to refrain from buying vegetables, seaweed, meat and fruits.
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Yokohama Rubber, a Japanese corporation with a history of over 107 years, has purchased a tire factory for the mining industry, as well as for earthmoving and oversized transport machinery, located in Drobeta Turnu Severin, according to Profit.ro. The factory, built in the 1970s–1980s, was put up for sale by the judicial liquidator of the company Euro Tyres Manufacturing SRL, which went bankrupt at the end of January 2025 after nearly 7 years of insolvency. The company owns an industrial platform spanning over 19 hectares in the city of Drobeta Turnu Severin.
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U.S. tariff negotiators appeared reluctant to lower levies on cars, steel and aluminium in a recent meeting with Japanese counterparts - a stance that made the Japanese side feel that cooperation could be difficult, the Nikkei newspaper reported on Friday, Reuters reported. U.S. negotiators including Treasury Secretary Scott Bessent met with Japan's top trade negotiator, Ryosei Akazawa and other Japanese officials in Washington on Thursday and presented a proposed framework for a trade agreement, the paper said.
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The Bank of Japan kept interest rates steady and sharply cut its growth forecasts on Thursday, suggesting uncertainty surrounding U.S. tariffs and the hit to exports could keep policy in a holding pattern for some time, Reuters reported. But the central bank projected inflation would stay roughly on course to hit its 2% target in coming years, a sign that risks from U.S. tariffs could delay, but not derail, its rate hike plans.
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The Bank of Japan is widely expected to maintain its policy rate unchanged at 0.5% at a two-day meeting ending Thursday as it waits to see if Japan will be exempt from President Trump’s tariffs, the Wall Street Journal reported. BOJ policymakers have grown more cautious about the impact of additional U.S. tariffs on the Japanese economy. Aside from the risk of exports slowing, they are worried that uncertainty over U.S. policymaking will make Japanese companies hesitant to allocate capital.
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Japanese corporate issuers are rekindling some shelved yen bond deals in a sign of pressing funding needs even as investors seek fatter premiums, the Japan Times reported. Suntory, one of a slew of firms that canceled or delayed deals in April due to sharp market fluctuations, is considering resuming the sale in May. Another beverage group, Asahi, sold yen bonds on Friday in an offering that was postponed at the start of the month. Companies paid about 60 basis points more than Japanese sovereign debt on average this month for new issuance, data showed.
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Japanese and U.S. finance chiefs meet on Thursday for high-stakes talks on exchange rates that have drawn market attention as a venue where Washington could pressure Tokyo to prop up the yen and help it reduce the huge U.S. trade deficit, Reuters reported. As the two countries proceed with separate bilateral talks on tariffs, the thorny currency rate topic has been set aside for Japanese Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent to discuss in Washington - the first face-to-face talks between the two. U.S.
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Japanese banks must monitor various risks associated with high levels of uncertainty over global trade policies, the Bank of Japan said on Wednesday, as U.S. President Donald Trump's tariffs have rocked financial markets in recent weeks, Reuters reported. "Japan's financial system has been maintaining stability on the whole," the BOJ said in a semi-annual report. But since the beginning of April, "uncertainty has heightened regarding the formulation of trade and other economic policies in each jurisdiction, geopolitical risks, and developments in global financial markets," the BOJ said.
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