[Mizuho Securities: Oil Price Shock Puts Bank of Japan in Policy Dilemma] According to a report by Golden Finance on April 27, Vishnu Varathan of Mizuho Securities stated that the oil price shock triggered by the Middle East war could, on one hand, lead to demand destruction, while on the other hand, further exacerbate existing inflation risks. The Bank of Japan is expected to hold steady this week. The Bank of Japan is caught in a dilemma, as it remains unclear which risk will dominate and what corresponding measures should be taken. The already elevated inflation and intense depreciation pressure on the yen, which existed prior to the Middle East crisis, have constrained the Bank of Japan's ability to preemptively ease policy to counter potential growth shocks. At the same time, the Bank of Japan cannot raise interest rates too quickly or too significantly, as this could undermine the prospects for achieving sustainable and healthy reflation. (Dongxin News Agency)