Sumitomo Mitsui Bank: The Bank of Japan may still raise interest rates in April

Golden Ten Data reported on April 15 that due to uncertainties in the Middle East situation, market expectations for the Bank of Japan to raise interest rates in April are weakening. However, Sumitomo Mitsui Banking Corporation expects the Bank of Japan to raise rates to 1% this month. The institution believes that a 1% rate is still slightly below the Bank of Japan’s estimated neutral rate range—a level that is neither restrictive nor stimulative, having neither a tightening nor expansionary effect on the economy. If the rate hike is delayed, raising rates when inflation is already trending downward would be difficult to justify. It is expected that as food price growth slows, Japan's inflation rate will decline further.