0624 GMT - The Bank of Japan is most likely to keep the policy rate unchanged at 0.75% at the March meeting, MFS Investment Management's Carl Ang says in a note. "The rationale for a pivot toward frontloaded or faster hikes remains unclear given elevated uncertainty from the Iran conflict and its impact on commodity markets," the fixed income research analyst says. MFS IM's base case is for the next 25-basis-point hike in June with the expectation of a 1.75% terminal rate and a broadly semi-annual pace of policy normalization unchanged. Prime Minister Sanae Takaichi's fiscal expansion agenda represents a longer-term upside risk to inflation and comes on top of more immediate cost-push pressures from the Iran conflict, he says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
March 13, 2026 02:24 ET (06:24 GMT)
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