Former Bank of Japan Policy Board Member: The Bank of Japan May Raise Interest Rates in April

Deep Tide TechFlow News, February 17 — According to Jinshi Data, former Bank of Japan Policy Board member Seiji Ando stated that the Bank of Japan is likely to use the large amount of new data available in April as an opportunity to raise interest rates, rather than heed market speculation about a possible rate hike in March. In an interview on Monday, Ando said, “Raising rates in March would carry risks because it would be based on expectations rather than confirmed signals. In April, a substantial amount of data will be available to confirm improvements in core inflation.” Ando’s view aligns with the growing market expectation that the committee led by Governor Ueda Haruhiko may take action in the spring — earlier than most economists predicted after the last rate hike in December. He noted that, despite concerns that Prime Minister Suga Yoshihide might hinder the Bank of Japan’s normalization process, especially after her landslide victory in last week’s election, she is unlikely to block a rate hike, as such an action could be counterproductive. Ando stated, “Suga Yoshihide seems to be very sensitive to market dynamics. If she tells the Bank of Japan not to raise rates, the potential market reaction would be a depreciation of the yen.”