Bank of Japan watchers say the new auto tariffs announced by U.S. President Donald Trump significantly reduce the chances of a rate hike by the Bank of Japan at its May meeting. Atsushi Takeda, chief economist at Itochu Research Institute, said, "The chances of a rate hike in May are even lower, and the Bank of Japan has to carefully study the impact of tariffs on the economy. There is no way they can finish this work before the May meeting." The U.S. announcement comes as the Bank of Japan is looking for the right opportunity to raise interest rates as consumer inflation continues to hover above target. The 25 percent tariff will put pressure on the auto sector, a core component of the Japanese economy, and could ripple across the broader sector. Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management, said: "US auto tariffs are not conducive to the Bank of Japan raising interest rates earlier, and long-term interest rates may fall below 1.5%." (Jin Ten)