[Oxford Economics Predicts Bank of Japan May Delay Rate Hike to July] Shigeto Nagai, head of Japan economics at Oxford Economics, stated that considering the possibility of Japan's economy falling into stagflation, the Bank of Japan is expected to postpone its next rate hike from June to July and continue gradual rate hikes in the first and third quarters of 2027. In the short term, rising energy costs will accelerate supply-side-driven inflation, and core CPI may not return to 2% until the second quarter of 2027. Additionally, the forecast for real GDP growth in 2026 has been downgraded to 0.3%, primarily due to higher inflation limiting real income growth. Despite concerns over inflation expectations and yen depreciation, the Bank of Japan is likely to adopt a more cautious approach, prioritizing the impact of rate hikes on corporate profits and household incomes.