Kawamoto Macro: The short-term survey results in Japan show that the Bank of Japan will no longer delay tightening its policies.

Capital Economics stated that the strong results of Japan's first quarter survey may provide support for the Bank of Japan to raise interest rates this month. Marcel Thieliant, head of the company's Asia-Pacific region, pointed out that businesses seem to be unaffected by the energy-related impact of Iran. He noted that the weakening of the energy-intensive industries was offset by the resilience of other sectors, and added that tight labor market conditions, stronger capital expenditure plans by large companies, and inflation expectations above the Bank of Japan's 2% target could soon push the bank to tighten policy.