Bank of Japan likely to signal June rate hike

The Bank of Japan is set to maintain interest rates at 0.75 percent next week. Policymakers remain alert to inflation risks driven by Middle East energy shocks.

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The Bank of Japan is widely expected to maintain its current interest rate levels during next week's policy meeting, though analysts anticipate a shift toward a more hawkish stance. Despite the projected hold, policymakers are likely to signal a readiness to implement a rate hike as early as June, driven by concerns over energy shocks and persistent inflation risks stemming from geopolitical instability.

A Japanese flag flies above the Bank of Japan's headquarters during a construction phase in Tokyo. REUTERS/Toru Hanai
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