Mizuho: The Bank of Japan is expected not to forcefully raise interest rates in April because of the high level of uncertainty.

Ruisui Securities economist Yusuke Matsuo said that in the highly uncertain situation brought about by geopolitical risks, the Bank of Japan is unlikely to forcibly raise interest rates at its meeting in April. The economist predicts that the central bank will maintain the status quo until the June meeting. Overnight index futures markets currently estimate the likelihood of a rate hike in April at only 17%, a significant drop from around 60% last week. Bank of Japan Governor Haruhiko Kuroda has mentioned the impact of the Middle East conflict on both upward and downward trends in Japan's price levels. "While he does not seem to rule out the possibility of a rate hike in April, he appears to lean towards a more cautious approach to further assess the outlook," Matsuo said.