Sources say the Bank of Japan has not ruled out the possibility of a rate hike in April.

Golden Ten Data reported on March 5 that, according to foreign media, insiders revealed that Bank of Japan officials are still advancing the path of interest rate hikes and have not ruled out the possibility of a rate hike in April, while continuing to assess the impact of Middle East tensions on the Japanese economy. Although officials believe the likelihood of a rate hike in March is very low, as long as the economic outlook develops as expected, they have not changed their stance on continuing to raise rates. Officials consider the key variable in assessing the outlook for Japan's economy and the risks to the interest rate path to be the duration of the conflict. They stated that policy decisions will still be made meeting by meeting, and an April rate hike cannot be ruled out. Insiders said the Bank of Japan will closely monitor the upside risks to inflation brought by rising oil prices, especially as Japanese companies are increasingly willing to pass on rising costs to consumers. If Middle East tensions continue to keep crude oil prices high, this could push up inflation expectations and strengthen price momentum. Before the U.S. launched an attack on Iran last weekend, the trajectory of Japan's economy and inflation was largely in line with the Bank of Japan's forecasts.