TOKYO (March 4): Bank of Japan governor Kazuo Ueda said the central bank will continue to raise interest rates if its economic forecasts materialise, but warned of the potential hit to global growth from the Middle East conflict that required vigilance. Global stock prices fell as a widening conflict in the Middle East boosted safe-haven demand and pushed oil prices up sharply, exacerbating investor concerns about inflation. BOJ executives have signalled readiness to continue raising still-low interest rates, though offering few hints on how soon the next rate hike could come. Sources have told Reuters the fresh market volatility triggered by the Middle East conflict has heightened the chance the BOJ will hold off on raising rates in March. The BOJ has said it would focus on whether wage gains will broaden and give households purchasing power in judging how soon to raise interest rates.

Source: The Edge Markets March 04, 2026 07:34 UTC