Economist: Risk Increases as Bank of Japan Falls Behind the Curve

Golden Ten Data reported on April 14 that an Okasan Securities economist stated that as the mechanism for simultaneous increases in wages and prices in Japan becomes more active, there is a growing sense that the Bank of Japan is lagging behind in policy response. For the government led by the Prime Minister, it is important to put the central bank on the path of raising rates, rather than masking inflationary pressures through large-scale subsidies and consumption tax cuts. Given the high uncertainty in the Middle East, the overnight index swap market estimates about a 40% probability that the Bank of Japan will raise interest rates in April this year.