Institution: Three votes support rate hike, unexpectedly; Bank of Japan will maintain the inclination to raise interest rates

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Golden Financial reports that on April 28, Hirofumi Suzuki, Chief FX Strategist at Japan’s Sumitomo Mitsui Banking Corporation, said that the fact that there are three votes in support of the size of the rate hike was somewhat unexpected. The policy committee member Junko Nakagawa also shifted to support the rate hike. In Japan, the effects related to the Middle East shock have already started to show up in consumer confidence, which is concerning in itself, and this impact is expected to further pass through to the price level. Meanwhile, the Japanese yen still faces depreciation pressure in the financial markets. Overall, the Bank of Japan will have no choice but to maintain a stance inclined toward rate hikes. If it can be confirmed that the situation in the Middle East has eased, it is expected that the bank will further raise rates around June to July. (Jin10)

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