Sources: Bank of Japan unlikely to raise interest rates at April meeting

Deep Tide TechFlow reports that on April 20, according to five sources familiar with the Bank of Japan's thinking, the central bank is unlikely to raise interest rates next week. This is due to the diminishing hope for a swift resolution to the Middle East conflict, which continues to cast uncertainty over Japan's economic and price outlook. While the final decision remains uncertain and will depend on the progress of peace talks between the U.S. and Iran, the sources indicated that the central bank is inclined to maintain the status quo 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 may consider maintaining the status quo this month as a viable option." Another source echoed this sentiment. A third source noted that the Bank of Japan is unlikely to raise interest rates because the market has already largely priced in the possibility of no rate hike this month. The sources added that even if the Bank of Japan keeps rates unchanged next week, the central bank is likely to signal readiness to raise rates as early as June, given the mounting inflationary pressures. (Jin10)