Bank of Japan Governor Kazuo Ueda signalled potential policy adjustments if US tariffs significantly damage Japan's economy, suggesting the central bank may halt its rate-hike cycle, Japan's Sankei reported Wednesday, citing an interview.

Risks from Trump's trade policies have increasingly aligned with the BOJ's "bad scenario" projections since February, already weakening business and consumer sentiment, Ueda reportedly said.

While maintaining plans for gradual rate increases if economic conditions permit, the governor emphasized readiness to act should tariff impacts intensify, the report added.

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