Daiwa Securities: Japan's Fiscal Expansion and Weak Yen May Prompt Central Bank to Raise Interest Rates Again

Odaily News Daiwa Securities economists stated that the Bank of Japan may raise its policy rate again between April and June, which could be earlier than previously expected. The economists noted in a research report: "Fiscal expansion and a weak yen have heightened market concerns about price increases, prompting calls for an earlier interest rate hike." They added that as Bank of Japan Governor Kazuo Ueda has hinted at closely monitoring Japanese companies' price adjustments in April, the central bank's branch manager meeting that month and the Tokyo area's April CPI data could become key factors in deciding the next rate hike. (Jin10)