Last month, the BOJ raised the policy rate to 0.5% from 0.25%, the highest level since October 2008. Gov. Kazuo Ueda said at a post-meeting news conference that the bank would reflect on the impact of U.S. tariffs on its economic outlook and policy making as details become available.

The need for further interest rate hikes was discussed at the most recent Bank of Japan monetary policy meeting, with a board member pointing to the performance of the domestic economy and price rises as catalysts for higher borrowing costs,