Sources: BOJ May Hold Off on Rate Hike in April Meeting

Odaily According to five sources familiar with the Bank of Japan's thinking, the BOJ is unlikely to raise interest rates next week. As hopes for a swift end to the Middle East conflict fade, Japan's economic and price outlook remains clouded with uncertainty. While the final decision still carries some uncertainty and depends on the progress of peace talks between the US and Iran, the sources indicated that the central bank is leaning towards maintaining the status quo this month to allow more time to assess the impact of the conflict. One source stated, "Given the high level of uncertainty at present, the BOJ may consider it feasible to maintain the current stance this month." Another source echoed this view. A third source noted that the BOJ is unlikely to hike rates as the market has already largely priced in the possibility of no action this month. The sources added that even if the BOJ keeps rates unchanged next week, given mounting inflationary pressures, it is likely to signal its readiness to raise rates as early as June. (Jin10)