Moody's: The Bank of Japan may keep interest rates unchanged this week, with a forecast to raise them to 1% by mid-year

Gate News Report, March 16 — Moody’s Analytics stated in a report that the Bank of Japan is expected to keep interest rates unchanged this week and may raise rates to 1% around mid-year. The report noted that the Middle East conflict has increased the risk of inflation re-accelerating, but the uncertainty caused by the conflict will likely keep the Bank of Japan on hold for now. If the yen weakens further, it could prompt the BOJ to raise rates earlier later this year. Moody’s Analytics also mentioned that slowing wage growth and unstable economic data make it difficult to justify a aggressive rate hike path above 1%.

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