TechFlow News, March 19: Masato Koike, Senior Economist at research firm Sompo, stated that the yen’s weakness remains a factor, and despite associated risks, the Bank of Japan (BOJ) continues to signal its commitment to further rate hikes. This stance persists even amid divergent views among committee members—including Nobuhiro Kanda and Naoki Tamura. Overall, the clearest message is that the BOJ has not abandoned its tightening posture. In financial markets, the BOJ broadly believes it would be difficult to proceed with rate hikes amid highly unstable market conditions.
Current market volatility—compounded by escalating tensions in the Middle East—is unlikely to alter its fundamental policy direction. I will closely monitor how resolute Governor Kazuo Ueda appears (at the press conference) and how he responds to questions regarding his relationship with the Takata municipal government. (Jinshi)
