The Bank of Japan signals subtly to avoid committing to a rate hike before the April meeting

ME News Report, April 6 (UTC+8), the Bank of Japan, in its two quarterly regional economic reports, signaled with a highly subtle tone, avoiding fueling market expectations of a rate hike this month. In another press release summarizing the views of regional bank presidents, the Bank of Japan stated that looking ahead, with increasing uncertainties, there are concerns about rising prices, especially energy prices, and their negative impact on corporate profits and private consumption. This comment indicates that the Bank of Japan is reluctant to commit to a rate hike just three weeks before the next policy decision on April 28. According to pricing in the overnight swap market, as of Monday, traders believe there is about a 66% chance of a rate hike this month, as the Iran conflict could pose greater upside inflation risks for Japan amid already elevated inflation. The Bank of Japan also noted that many reports indicate that companies continue to pass on rising costs such as labor and logistics expenses to sales prices. Meanwhile, companies are continuing to respond to consumer inflation fatigue by limiting price increases and strengthening their low-priced product lines. (Jin10) (Source: ODAILY)