Bank of Japan watchers brought forward their forecast for when they expect the next interest rate hike, after clarity over trade increased with US President Donald Trump announcing deals including one with Japan.

The Bank of Japan laid the groundwork this week for resuming interest rate hikes by spelling out explicitly for the first time the risks that persistent food price rises fan broad-based inflation.

Japan’s top trade negotiator and Minister of State for Economic Revitalization, Akimasa Akazawa, said the cuts on automobile tariffs could take time to be effected.

The US and the EU will have zero tariffs on aircraft and their components, some chemicals, some generic drugs, some semiconductors, some agricultural products and essential raw materials. Alcoholic beverages are not included in the agreement. The 50% tariffs on steel and aluminum remain.