"Even if market volatility is high or when there's uncertainty, we need to decide what's necessary," Himino told a news briefing, playing down the view market turbulence alone would be enough reason to delay a rate hike. Morgan Stanley MUFG Securities estimates a 10% increase in oil prices to shave around 0.1% point off Japan's real gross domestic product (GDP). "The BOJ is likely to adopt a more cautious stance, further reducing the probability of a near-term rate hike," he said. That, in turn, could push household and corporate inflation expectations above 2%," said Ryutaro Kono, chief Japan economist at BNP Paribas. "Given such economic and price backdrop, I don't think the BOJ will choose to put off a rate hike easily," he said.

Source: The Edge Markets March 02, 2026 09:06 UTC