On April 17, Mizuho Securities economists stated that due to high uncertainty surrounding geopolitical risks, the Bank of Japan is unlikely to raise interest rates at its April meeting. The BOJ will make another decision at its June meeting. Currently, the overnight index swap market estimates the likelihood of a rate hike in April at only 17%, a significant drop from about 60% last week. The BOJ Governor has mentioned the dual impact of the Middle East conflict on Japan's price trends. While he does not seem to rule out the possibility of a rate hike in April, he appears to favor a more cautious approach to further assess the situation.
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