Svmuu News Due to uncertainties in the Middle East situation, market expectations for a Bank of Japan interest rate hike in April are weakening. However, Sumitomo Mitsui Banking Corporation of Japan expects the Bank of Japan to raise its interest rate to 1% this month. The institution believes that a 1% interest rate is still slightly below the neutral rate range estimated by the Bank of Japan—a level that is neither restrictive nor stimulative, neither tightening nor expansionary for the economy. If the timing of the rate hike is delayed, it would be difficult to justify raising rates when inflation is already on a downward trend. It is expected that Japan's inflation rate will further decline as food price growth slows. (Jin10)