Overview
- Opposition lawmakers pressed the government after reports that Sanae Takaichi voiced reservations about more tightening in a recent meeting with Governor Kazuo Ueda.
- A Reuters survey shows all 64 economists expect no change on March 19, with 60% forecasting a rise to 1.00% by end-June and June the most cited month for the next move.
- The central bank raised its short-term rate to 0.75% in December, and Ueda has signaled a willingness to hike again if forecasts materialise.
- Economists say the U.S.-Israeli war against Iran and volatile oil prices complicate decisions for an energy-import dependent Japan as the yen weakens.
- Most economists in the poll said new policy board nominees Toichiro Asada and Ayano Sato are unlikely to impede future hikes, though some see the picks as signaling preference for slower tightening.