Nomura: Bank of Japan to Raise Rates in June to Counter Inflation Risks from Yen Depreciation

Odaily Odaily News Nomura Securities believes the Bank of Japan is inclined to raise interest rates in June, partly to address the upside inflation risks stemming from further yen depreciation. However, several economists in the latest Reuters poll suggest the BOJ may opt to hold steady, waiting for greater clarity on the situation in the Middle East, as the conflict's negative impact on Japan's economy could be far more severe than currently anticipated. The situation is delicate and requires careful consideration, but the BOJ has only itself to blame. Over the past year, it had countless opportunities to raise rates but failed to seize them. Now, with the US-Iran war escalating and showing no signs of ending, they have been forced into a very difficult position. (Jin Shi)