The Bank of Japan is leaning toward keeping its policy rate at 0.75% at the
April 28 meeting due to Middle East uncertainty, according to people familiar,
though it remains committed to raising rates when conditions allow. Officials
see little urgency given a fluid outlook, but some favor a hike as geopolitical
shocks may lift inflation, with forecasts potentially revised higher. Markets
now price just an 8% chance of a move versus 73% in March, while officials view
the decision as less clear-cut and will monitor the US-Iran conflict closely. A
June hike is possible if conditions hold, with yen weakness near 160 per dollar
and communication concerns also shaping deliberations.
