Sources: Bank of Japan (BOJ)s May Hold Off on a Rate Hike at Its April Meeting
Svmuu News: According to five sources familiar with the Bank of Japan (BOJ)’s thinking, the Bank of Japan (BOJ) is unlikely to raise interest rates next week. As hopes for a swift end to the war in the Middle East fade, the outlook for Japan’s economy and inflation remains uncertain.Although the final decision remains somewhat uncertain and will depend on the progress of peace talks between the U.S. and Iran, the sources said the central bank is inclined to maintain the status quo this month to allow more time to assess the impact of the conflict.One of the sources said, “Given the current level of uncertainty, Bank of Japan (BOJ) may view maintaining the status quo this month as a viable option.” Another source echoed this view.A third source noted that Bank of Japan (BOJ) is unlikely to raise rates, as the market has already fully priced in the possibility of no rate hike this month. These sources indicated that even if Bank of Japan (BOJ) keeps rates unchanged next week, the bank will likely signal its readiness to raise rates as early as June, given mounting inflationary pressures. (Jin Shi)
Source:Odaily · Source Link
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