Institutions predict the Bank of Japan will keep interest rates unchanged in March, with possible monetary policy adjustments in April

Gate News reports that on March 11, T. Rowe Price portfolio manager Vincent Chung stated in a report that due to the need to reassess the current geopolitical situation, the Bank of Japan (Japan’s central bank) may keep interest rates unchanged in March. He believes the bank might take monetary policy action in April, as wage negotiation data (Japan’s spring labor-management negotiations reflecting wage growth trends) will be available by then. Chung noted that recent factors such as rising oil prices have increased inflation risks, and sustained high oil prices could be a long-term drag on the central bank’s policy stance. He also pointed out that the market may be concerned about potential yen interventions (government efforts to stabilize the yen exchange rate), but recent yen depreciation has been consistent with other foreign currencies. He added that if the Bank of Japan signals a dovish stance at the March meeting, it could further pressure the yen.

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