Svmuu News Bank of Japan (BOJ) Former chief economist Seisaku Kameda said Monday that a peace agreement between the U.S. and Iran is not expected to alter Bank of Japan (BOJ) the forecast for two interest rate hikes this year. With inflationary pressures mounting, Bank of Japan (BOJ) is expected to raise the short-term policy rate from 0.75% to 1% on Tuesday.Kameda noted that had war not broken out in the Middle East, the hike would have taken place in April. He added that if the peace agreement leads to the smooth reopening of the Strait of Hormuz, it could alleviate some of the pressure on Bank of Japan (BOJ) to raise rates faster than expected to curb inflation. “But this will not alter Bank of Japan (BOJ) the plan to raise rates at a pace of about twice a year to push up real borrowing costs, which remain low, and normalize monetary policy,” Kameida said. He noted that following a rate hike in June, Bank of Japan (BOJ) the central bank is likely to raise rates again in October or December. In addition, Bank of Japan (BOJ) Governor Kazuo Ueda will miss the June meeting as he is in the hospital receiving treatment for an infectious liver cyst.Deputy Governor Shinichi Uchida will preside over the press conference in his place. Kameyama said Uchida is expected to reiterate the Bank of Japan (BOJ)’s determination to continue raising rates, but given the lingering uncertainty surrounding the situation in the Middle East, he will avoid giving clear hints about the timing of the next rate hike. (Jin Shi)