Yen weakness fuels rate hike expectations, but Middle East conflict remains the biggest "black swan"

Golden Ten Data reported on April 3 that Barclays Bank economists indicated in a report that the Bank of Japan might raise interest rates this month. The factors they listed include the hawkish tone reflected in the March meeting minutes of the Bank of Japan and the weakening of the yen. However, more than two weeks have passed since the March meeting, and the risk of prolonged Middle East conflict appears to have increased. Therefore, it is possible that more Bank of Japan policy board members may shift towards the view that Japan’s economic recession could worsen. The economists added that the decision on whether to raise rates at the April 27-28 meeting may remain uncertain until the "last moment."