• Economy recovering moderately but sees uncertainty from US trade policy.
  • Sees downside risks to economic outlook increasing due to the US trade policies.
  • Cuts view on corporate sentiment for first time since March 2022.

There's nothing new or surprising here. The expectations of a slowdown in global growth from US trade policies is what made the market to pare back the rate hike probabilities for the BoJ with just 12 bps of tightening seen by year-end.

Source: Forex Live