TechFlow News, April 20: According to five sources familiar with the Bank of Japan’s (BOJ) thinking, the BOJ is unlikely to raise interest rates next week. Hopes for a near-term resolution to the Middle East conflict are fading, leaving Japan’s economic and price outlook still highly uncertain. Although the final decision remains somewhat uncertain—and will depend on developments in U.S.-Iran peace talks—the sources said the BOJ is inclined to hold rates steady this month to allow more time to assess the impact of the conflict.
One source stated: “Given the high degree of uncertainty currently prevailing, the BOJ may consider holding rates steady this month to be the appropriate course.” Another source echoed the same view. A third source noted that a rate hike is unlikely because markets have already fully priced in the possibility of no rate increase this month. The sources added that even if the BOJ keeps rates unchanged next week, it is likely to signal its readiness to raise rates as early as June, given mounting inflationary pressures. (Jinshi)
