Live Updates > Live Update Details
2026-04-06 16:00:32
[Bank of Japan Sends Subtle Signals to Avoid Fueling Expectations of Rate Hike This Month] (1) The Bank of Japan (BOJ) has maintained a highly subtle signal in its two quarterly regional economic reports to avoid fueling market expectations of a rate hike this month. (2) In another press release summarizing the views of its branch governors, the BOJ stated that increased uncertainty about the future outlook and concerns about the negative impact of rising prices (especially energy prices) on corporate profits and private consumption. This suggests that the BOJ is reluctant to commit to a rate hike with three weeks to go before its April 28 rate decision. Currently, overnight swap market pricing indicates a probability of about 66% for a rate hike this month, as the war in Iran could pose a greater upside risk to inflation. (3) The BOJ also noted that many reports show that companies continue to pass on rising costs such as labor and logistics to selling prices; meanwhile, companies are addressing consumer inflation fatigue by limiting price increases and strengthening their lineup of low-priced products.
