Daiwa Securities: Japan's fiscal expansion and yen weakness may prompt the central bank to raise interest rates again

Odaily Planet Daily reported that Daiwa Securities economists suggest that the Bank of Japan may raise its policy interest rate again between April and June, which could be contrary to previous expectations. The economists stated in their research report: “Fiscal expansion and the weakening of the yen have heightened market concerns about rising prices, prompting calls for an earlier rate hike.” They added that since Bank of Japan Governor Ueda Kazuo has hinted that he will closely monitor Japanese companies’ price adjustments in April, the branch manager meeting of the central bank in that month and the April CPI data for the Tokyo area could be key factors in deciding the next rate hike. (Jin10)