I just came across an interesting development regarding the Bank of Japan's interest rate hike. According to sources, the BOJ's recent policy stance is somewhat intriguing—on the surface, they seem likely to hold steady in the short term, but in reality, they have already hinted at future actions.

Specifically, although the decision at the end of April kept the overnight rate unchanged at 0.75%, the central bank officials' attitude is very clear: as long as economic conditions permit, raising interest rates is inevitable. They emphasized that the financial environment remains accommodative, which means increasing borrowing costs has become a predetermined direction. Interestingly, some officials even lean toward a more aggressive stance, expecting geopolitical risks to push prices higher, so they want to act proactively.

From the central bank's perspective, they are also re-evaluating inflation expectations, which could see a significant upward revision at this meeting. The likelihood of a rate hike in June is indeed increasing, provided economic data remains stable. But there is a variable—uncertainty brought by the US-Iran conflict. The BOJ has explicitly stated that they will continue to monitor geopolitical developments and will only finalize their policy direction at the last moment.

Therefore, from a market perspective, the pace of the BOJ's rate hikes might be faster than previously expected. If economic data remains as anticipated, we could see a tangible increase in interest rates as early as June. This will have a considerable impact on the yen and related assets.