BOJ likely to put off rate hike until June or July, ex-top economist says

try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Oil holds steady after 5-day winning streak; set for weekly surge on Iran conflict Trump replaces Homeland Security chief Kristi Noem Gold rises but heads for weekly loss as firm dollar dulls haven appeal Wall Street ends lower on escalating Iran conflict, report of AI export curbs (South Africa Philippines Nigeria) BOJ likely to put off rate hike until June or July, ex-top economist says By Economy Published 03/06/2026, 02:40 AM Updated 03/06/2026, 02:42 AM BOJ likely to put off rate hike until June or July, ex-top economist says 0 By Leika Kihara TOKYO, March 6 - The Bank of Japan is likely to hold off on raising interest rates until June or July, as the conflict in the Middle East shows few signs of easing and is seen keeping markets on edge, its former top economist Seisaku Kameda said on Friday. Before the U.S.-Israel strikes on Iran, the BOJ probably had its eyes set on a rate hike in April, as reflected in Governor Kazuo Ueda’s comments signalling its readiness to raise rates again if past increases did not materially hurt the economy, Kameda said. If the conflict turns out to be short-lived and de-escalates this month, the BOJ may still opt to raise its policy rate to 1.0% from 0.75% in April, he told Reuters in an interview. But with no near-term end in sight to the war, the BOJ will likely wait until around June or July to avoid shifting policy at a time of heightened market volatility, Kameda said. "The BOJ is already behind the curve in addressing mounting inflationary pressure. The risk of being too late could heighten further with rising oil prices and the weak yen," he said. "But with markets so jittery and the likelihood of an early end to the conflict fading, the BOJ probably has little choice but to stand pat," said Kameda, who is well-tuned to the central bank’s economic analyses and policy approach. The BOJ exited a decade-long, massive stimulus in 2024 and raised interest rates several ti...