BOJ Opinions Reveal Push for Early Rate Hike as Inflation Risks Rise

Overview

• The Bank of Japan, which published April meeting opinions Tuesday, disclosed that several board members argued for an early rate increase if the economy shows no clear slowdown.
• At the April 27–28 meeting, the bank kept its policy rate near 0.75% to watch how Middle East tensions affect the outlook.
• Multiple members warned that higher crude prices tied to strains around the Strait of Hormuz are raising the risk that prices will run hotter.
• The Mainichi reported that three of the nine board members opposed holding the rate steady at the April meeting, showing a larger bloc favoring tighter policy.
• Traders now see a rate move as possible at the June meeting, putting focus on how energy costs and price-setting by firms shape the bank’s next decision.