Institutions: Bank of Japan Expected to Keep Interest Rates Unchanged in March

Odaily According to a report by T. Rowe Price portfolio manager Vincent Chung, the Bank of Japan is likely to keep interest rates unchanged in March as it needs time to reassess the current geopolitical situation. He believes the central bank may take monetary policy action in April, when wage negotiation data will be available. He stated that factors such as the recent rise in oil prices have heightened inflation risks, and persistently high oil prices could become a long-term drag on the central bank's policy of maintaining the status quo. Chung also noted that the market may be concerned about potential yen intervention, but the recent depreciation of the yen is in line with other foreign exchange peers. He added that if the Bank of Japan sends dovish signals at its March meeting, it could put further pressure on the yen. (Jin10)