The Bank of Japan reiterated its commitment to continue raising interest rates while closely monitoring the impact of the Iran conflict on inflation.

According to foreign media reports, Bank of Japan Governor Kazuo Ueda stated that if economic forecasts meet expectations, the central bank will continue to raise interest rates. However, he warned that conflicts in the Middle East could impact global economic growth, necessitating vigilance. During his address to the Diet, he noted that developments in the Middle East might significantly affect Japan and the global economy through rising energy costs and market volatility. Specifically, an increase in crude oil prices would negatively impact Japan’s terms of trade, harming the economy and potentially exerting downward pressure on underlying inflation. Sources cited by Reuters indicated that the new wave of market volatility triggered by Middle Eastern conflicts has increased the likelihood that the Bank of Japan may pause its interest rate hikes in March.

AASTOCKSMar 4 15:05