The Bank of Japan (BoJ) is currently in a temporary pause phase regarding its policy rate hikes, according to BoJ board member Hajime Takata. While the BoJ remains committed to achieving its price stability target, it continues to maintain an accommodative monetary policy stance amid uncertainties, particularly due to the impact of U.S. tariffs. Takata emphasized the need for careful monitoring of risks arising from divergent monetary policies between Japan and the U.S. The BoJ's regional economic report, known as the Sakura Report, maintained its economic assessments unchanged across all nine regions, noting that the effects of U.S. tariffs on Japan's economy remain limited but have caused some companies to delay capital investments. Japanese automakers have responded to U.S. tariffs by slashing export prices to the U.S. by a record 19.4%, sacrificing profits to stay competitive. This price adjustment contributed to a nearly 25% decline in the value of car exports to the U.S. in May, despite a smaller 3.9% drop in export volumes. Former BoJ policymaker Makoto Sakurai indicated that rate hikes might be delayed until March 2026 due to the economic pressures from U.S. tariffs. The BoJ's Osaka and Fukuoka branch managers reported that while some regional economies are cautiously watching trade developments, the current impact of tariffs on regional economies remains limited. Overall, the BoJ is balancing its goal of price stability with the need to support economic activity amid external trade uncertainties linked to U.S. tariff policies.