Capital Economics: The Bank of Japan is likely to cite the increase in energy prices as a reason for raising interest rates in April.

Marcel Thieliant, head of Asia-Pacific at Capital Economics, said that the Bank of Japan is likely to use the rise in energy prices as a reason to hike rates in April. He expects the Bank of Japan to not raise rates in March, and the financial markets are pricing in only a very slim chance of a rate hike at next week's meeting.