Golden Finance reports that JPMorgan stated the Bank of Japan will announce its interest rate decision for March this week. It is almost certain that the policy rate will remain unchanged at 0.50%. Whether or not they reveal key conditions for further interest rate hikes during the meeting will be crucial in determining when to raise rates next, which is worth paying attention to. Considering recent increases in information dissemination about inflation risks from Bank of Japan officials, we believe there may be a possibility of proposing an interest rate hike at the next meeting in May, although our baseline scenario is a June increase.
In situations where the Bank of Japan maintains its policies unchanged, reactions from yen exchange rates might be limited.