The Bank of Japan predicted growth of just 0.5 percent, cutting its previous forecast in half, and decided against another hike in interest rates.

Donald Trump’s quixotic trade war appears to have entered the tilting-at-windmills phase as the U.S. president sees “big, beautiful” deals that just don’t seem to be there.

The yen weakened after the Bank of Japan halved its economic-growth forecast, citing uncertainty around President Trump’s tariff war. The central bank expects growth of 0.5% in the 12 months ending next March.