Institutions: Summary of Opinions from the Bank of Japan at the End of March May Provide Clues for an April Rate Hike

Odaily News SMBC Nikko Securities economists stated that Bank of Japan Governor Kazuo Ueda is expected to avoid committing to a specific rate hike timeline during Thursday's press conference. However, if the summary of opinions from this meeting, to be released on March 30, shows policymakers supporting further tightening, investors may further price in the possibility of a rate hike in April. The market views a 1% policy rate (currently 0.75%) as still accommodative for the Bank of Japan, therefore, even if the situation in the Middle East deteriorates and global risk aversion intensifies, it is unlikely to prevent a rate hike in April. (Jin10)