Sumitomo Mitsui Banking Corporation of Japan: The Bank of Japan may still raise interest rates in April

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ME News Report, April 15 (UTC+8), due to uncertainties in the Middle East situation, market expectations for the Bank of Japan to raise interest rates in April are weakening. However, Sumitomo Mitsui Banking Corporation Japan expects the Bank of Japan to raise rates to 1% this month. The institution believes that a 1% rate is still slightly below the Bank of Japan’s estimated neutral interest rate range — a level that is neither restrictive nor stimulative, and is neither tightening nor easing for the economy. If the rate hike is delayed, conducting a rate increase when inflation is already on a downward trend will be difficult to justify. It is expected that Japan’s inflation rate will further decline as food price growth slows. (Jin10) (Source: ODAILY)

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