[Institution: High Probability of Rate Hike by the Bank of Japan in June, Stagflation Pressure May Limit Further Tightening] Jin10 Data, April 28 – Yuxuan Tang from JPMorgan Private Bank stated that the Bank of Japan opted to keep interest rates unchanged in its first official response following the Middle East war and the recent weakening of the yen. However, the 6-to-3 voting split indicates a higher probability of a rate hike as early as June. This expectation has largely been priced in by the market, which is currently betting on approximately two rate hikes for the remainder of 2026. 'We believe the threshold for the Bank of Japan to significantly exceed this magnitude is quite high,' she noted. Japan is walking a tightrope of stagflation: energy prices remain elevated, while the country's energy self-sufficiency rate is among the lowest of major economies, making it more susceptible to external shocks. High-cost subsidy programs and other fiscal measures are expected to exert pressure on public finances. Against this backdrop, the Bank of Japan may need to maintain a relatively accommodative policy stance to cushion the impact of weakened demand.