Institution: The Bank of Japan leaves room for a rate hike in April, possibility of raising rates before mid-year remains significant

Golden Ten Data reported on April 20 that, given the outlook has become even more uncertain due to the Iran war, Bank of Japan Governor Kazuo Ueda did not commit in advance to a rate hike in April after attending the IMF meeting, but still sent some hawkish signals, suggesting that if not this month, a hike in June remains possible. Although market attention focused on his lack of clear indication of an April hike, Ueda also did not downplay the possibility of an April rate increase and emphasized the need to closely monitor the Middle East situation and its impact on the Japanese economy. Three sources familiar with Bank of Japan's thinking said that with both possibilities still on the table, Bank of Japan policymakers may hesitate until the last moment before deciding whether to raise rates at the meeting scheduled for April 27-28, depending in part on progress in negotiations to end the US-Iran war. The sources said: "In a highly uncertain situation, it is too early to make a decision now for a policy meeting over a week away."