BOJ Holds at 0.75%
The Bank of Japan kept its policy rate at 0.75% and warned the Iran war could push inflation higher via energy prices, a shout‑out to global spillovers for central banks. ( )
The policy board voted 8‑1 to set a money‑market operations guideline that “encourages the uncollateralized overnight call rate to remain at around its current level,” according to the BOJ’s decision document. (boj.or.jp) The BOJ’s statement reiterated its January 2026 Outlook projection that underlying CPI is expected to rise gradually and “in the second half of the projection period… be at a level that is generally consistent with the price stability target” of 2%. (boj.or.jp) Hawkish board member Hajime Takata was the lone dissenter, repeating a proposal to lift the policy rate to 1.0% on grounds of overseas developments affecting prices. (cnbc.com) Tokyo has already begun a unilateral release of strategic oil stocks—about 80 million barrels were announced for release to ease supply strains—and the government plans subsidies to aim for retail gasoline at roughly ¥170 per litre on average. (msn.com) Hedge funds and other investors have been positioning for further BOJ tightening, and Asian FX desks noted the yen traded near ¥159.22 to the dollar after Governor Kazuo Ueda signalled a possible move in April. (bloomberg.com) A Reuters poll conducted in early March found roughly 60% of economists expected the BOJ’s policy rate to reach 1.00% by the end of June, with June the most commonly named month for the next hike. (au.investing.com) The BOJ’s next scheduled monetary policy meeting is April 27–28, 2026, the session markets are watching for fresh guidance and any shift in the timing of further tightening. (boj.or.jp)
