Bank of Japan Seen Hiking in April Despite Iran Tensions--Market Talk -- Market Talk
Dow Jones
Mar 02
0801 GMT - BNP Paribas still expects the Bank of Japan to raise interest rates in April despite geopolitical tensions surrounding Iran. "With inflation expectations already near 2% and the economy at full employment, a surge in resource prices could easily accelerate price pass-through," it says. "Under these conditions, the risk that inflation expectations for both households and firms could climb well above 2% cannot be ignored," its economists say in a note. Additional fiscal stimulus to cushion any shock may help the economy to avoid a sharp contraction, potentially allowing the underlying inflation trend higher over the medium term, they add. (megumi.fujikawa@wsj.com)
(END) Dow Jones Newswires
March 02, 2026 03:01 ET (08:01 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.