On March 18, Morgan Chase stated that the Bank of Japan will announce its interest rate decision this week, and it is basically certain that the policy interest rate will remain unchanged at 0.50%. Whether the important conditions for further rate hikes will be revealed at the meeting will be the key to determining the timing of the next rate hike, which is worth watching. Considering the recent increase in the dissemination of information by Bank of Japan officials about the upside risks to inflation, we believe that the possibility of a rate hike may be raised at the next meeting in May, but our baseline scenario is a rate hike in June. If the Bank of Japan maintains its policy, the reaction of the yen exchange rate may be limited.