[Moody's: Bank of Japan May Raise Interest Rates to 1% by Mid-Year] Moody's Analytics stated in a report that the Bank of Japan is expected to keep interest rates unchanged this week and may raise them to 1% around mid-year. The agency noted that the Middle East conflict increases the risk of inflation accelerating again, but the uncertainty caused by the conflict will likely keep the Bank of Japan on hold. The agency also mentioned that a renewed weakening of the yen could prompt the Bank of Japan to raise rates earlier later this year. However, it added that slowing wage growth and sluggish real economic data make it difficult to support an aggressive rate hike plan beyond 1%. The Bank of Japan will announce its interest rate decision on Thursday.