Mizuho: The Bank of Japan is unlikely to raise interest rates in April given the high level of market uncertainty.

Economists at Mizuho Securities stated that due to high uncertainty surrounding geopolitical risks, the Bank of Japan is unlikely to raise interest rates at its April meeting. The Bank of Japan will make a further decision at its June meeting. The current overnight index swap market projects only a 17% probability of an April rate hike, a significant drop from approximately 60% last week. The Bank of Japan governor has mentioned the dual impact of the Middle East conflict on Japanese price trends. While he did not appear to rule out an April rate hike, he seems inclined to adopt a more cautious approach to further assess the situation. (Jinshi)