On April 27, Vishnu Varathan from Mizuho Securities commented that the oil price shock caused by the Middle East conflict could disrupt demand and exacerbate existing inflation risks. According to Jin10, the Bank of Japan is expected to maintain its current policy stance this week. The central bank is in a difficult position, as it is unclear which risk will dominate and what measures should be taken in response. The high inflation and significant depreciation pressure on the yen, which existed before the Middle East crisis, limit the Bank of Japan's ability to preemptively ease policy to counter potential growth shocks. At the same time, the bank cannot raise interest rates too quickly or significantly, as this could undermine the prospects for achieving sustainable and healthy reflation.