Svmuu News Bank of Japan (BOJ) In his latest remarks on Monday, Deputy Governor Ryozo Himino did not send any clear signals regarding interest rate hikes in the near term. Against the backdrop of the conflict that erupted in the Middle East over the weekend, this move further reinforced existing expectations in financial markets—namely, that Bank of Japan (BOJ) policymakers will opt to hold rates steady at this month’s monetary policy meeting.“I intend to closely monitor developments in the Middle East,” Ryozo Himino emphasized during a speech to local business leaders in Wakayama Prefecture, western Japan. The global economic outlook has become even more uncertain following the U.S. and Israeli strikes on Iran.Himeno’s remarks suggest that the likelihood of a rate hike at the Bank of Japan (BOJ)’s March 19 policy meeting is now negligible.This stands in stark contrast to his stance in January 2025—when he explicitly signaled that the committee would discuss raising the benchmark rate at a subsequent meeting, and the Bank of Japan (BOJ) subsequently did indeed raise borrowing costs as expected. Himeno’s decision to “remain silent” this time aligns closely with market participants’ expectations.Pricing in the overnight index swap (OIS) market indicates that the probability of the Bank of Japan (BOJ) raising the policy rate from 0.75% this month is only 6%. However, market expectations for April are quite different, with pricing reflecting a probability of approximately 65% for a rate hike at the April meeting.