The Bank of Japan is likely to hold interest rates at its April 27–28 meeting as uncertainty from the Iran conflict clouds the economic outlook, according to five sources familiar with its thinking. Policymakers are leaning toward standing pat to assess the impact of volatile energy prices and geopolitical risks, with markets already pricing out a near-term hike. However, the BOJ may signal readiness to raise rates as soon as June, as rising oil costs add to inflation pressures while posing risk

The Bank of Japan is likely to hold interest rates at its April 27–28 meeting as uncertainty from the Iran conflict clouds the economic outlook, according to five sources familiar with its thinking. Policymakers are leaning toward standing pat to assess the impact of volatile energy prices and geopolitical risks, with markets already pricing out a near-term hike. However, the BOJ may signal readiness to raise rates as soon as June, as rising oil costs add to inflation pressures while posing risks to Japan’s import-dependent economy.