KEY TAKEAWAYS
- The Bank of Japan (BOJ) held rates unchanged on 28 April, though three board members pushed for a rate hike, citing inflationary risks from the Hormuz crisis.
- The bank’s quarterly outlook for the economy and prices warned of stagflation, lowering the growth outlook and raising the price outlook, but the report stressed significant upside risks for prices through several channels.
- This week’s meeting suggests that the bank could be inclined to hike in June if higher inflation surfaces, which could increase pressure on the Takaichi government to address possible demand shortfalls.
Japan Foresight 