Sources: Bank of Japan May Hold Off on Rate Hike at April Meeting

Gold Financial reports, April 20th, according to five sources familiar with the Bank of Japan’s thinking, it is unlikely that the Bank of Japan will raise interest rates next week. Because the hope for a quick end to the Middle East war is gradually diminishing, Japan’s economic and price outlook remains uncertain. Although the final decision still carries some uncertainty and depends on the progress of peace negotiations between the US and Iran, the sources said the central bank is inclined to maintain the current stance this month to allow more time to assess the impact of the conflict. One source stated, “Given the current level of uncertainty, the Bank of Japan might consider maintaining the status quo this month to be feasible.” Another source expressed the same view. A third source said that the Bank of Japan is unlikely to raise interest rates because the market has already fully considered the possibility that rates will not be raised this month. These sources said that even if the Bank of Japan keeps rates unchanged next week, given the escalating inflation pressures, it is very likely to signal readiness to raise rates as early as June.