Mitsubishi Ufj Drops 4.31% Amid U.S. Trade Policy Uncertainty

On April 10, 2025, Mitsubishi Ufj experienced a significant drop of 4.31% in pre-market trading, reflecting investor concerns and market volatility.

Economists at Mitsubishi Ufj have highlighted the uncertainty surrounding U.S. trade policies, which is expected to persist until early July. This uncertainty is likely to influence the Bank of Japan's decision-making process, particularly regarding interest rates.

In a recent report, the economists noted that the Bank of Japan will need to assess the potential negative impact of a 25% tariff on automobiles on wage negotiations for small and medium-sized enterprises scheduled for April to June. They anticipate that the next rate hike is most likely to occur in September, with a possibility in July, depending on foreign exchange trends and the outcome of the Senate elections.

Furthermore, the economists predict that after raising the policy interest rate from the current 0.5% to 0.75%, the Bank of Japan will pause its monetary tightening policy. This cautious approach is aimed at stabilizing the economy amidst ongoing trade uncertainties.