Bank of Japan Likely to Hold Rates at April 28 Meeting, But Maintains Hawkish Stance

Gate News message, April 21 — According to sources familiar with the matter, the Bank of Japan is likely to keep interest rates unchanged at its meeting next week due to uncertainty stemming from the Iran conflict, but officials remain determined to raise borrowing costs in the near term.

The central bank plans to maintain the overnight rate at 0.75% on April 28, while signaling its commitment to raising benchmark rates as conditions permit. This decision increases the likelihood of action in June, provided economic conditions remain stable. Some officials still favor a rate hike at the upcoming meeting, anticipating that geopolitical shocks will push prices higher. The BoJ is also considering a significant upward revision to its inflation forecasts at this meeting.

Central bank officials said they will monitor the U.S.-Iran conflict closely until the final moment before making their policy decision.