Moody's: Bank of Japan May Hike Rates to 1% Midyear, Expected to Stand Pat This Week

BlockBeats News, March 16th, Moody's Analytics stated in a report that the Bank of Japan is expected to keep interest rates unchanged this week and may raise rates to 1% around mid-year. The escalating Middle East conflict has increased the risk of inflation resuming its acceleration, but the uncertainty brought by this conflict will likely keep the Bank of Japan on hold for now. If the yen weakens further, it may prompt the Bank of Japan to raise rates later this year. Slowing wage growth and inconsistent real economic data make it difficult to justify an aggressive rate hike path above 1%.