Sumitomo Mitsui Banking Corporation: The Bank of Japan may still raise interest rates in April.

According to ME News, on April 15th (UTC+8), market expectations for a Bank of Japan (BOJ) interest rate hike in April are weakening due to uncertainty surrounding the Middle East situation. However, Sumitomo Mitsui Banking Corporation expects the BOJ to raise interest rates to 1% this month. The institution believes that a 1% rate is still slightly below the BOJ's projected neutral interest rate range—a level that is neither restrictive nor stimulative, neither contractionary nor expansionary for the economy. If the rate hike is delayed, it will be difficult to justify raising rates when inflation is already trending downwards. It is expected that Japan's inflation rate will further decline as food price growth slows. (Source: ME)