Svmuu News The Bank of Japan, by maintaining highly nuanced signals in its two quarterly regional economic reports, has avoided fueling market expectations regarding the possibility of a rate hike this month. In another press release summarizing the views of branch managers, the Bank of Japan stated that looking ahead, amid increasing uncertainties, there are concerns about rising prices, particularly energy prices, and their negative impact on corporate profits and private consumption. These comments indicate the Bank of Japan's reluctance to commit to a rate hike with three weeks remaining until its next interest rate decision on April 28th. According to pricing in the overnight swap market, as of Monday, traders estimated the probability of a rate hike this month at approximately 66%, as the war in Iran could pose greater inflationary upside risks to Japan against a backdrop of already persistently high inflation. The Bank of Japan also noted that many reports indicate companies continue to pass on rising costs, such as labor and logistics expenses, to selling prices. At the same time, companies continue to respond to consumer inflation fatigue by limiting the extent of price increases and strengthening their low-price product lineups. (Jin10)