Former Bank of Japan board member suggested that interest rates could increase in April. The market is waiting to see whether the governor will release any policy signals before the decision.

A former Bank of Japan board member said that the central bank may raise interest rates this month to avoid falling behind in controlling inflation. "From the perspective of the Bank of Japan, I would say it is time to act now," said Masahiro Bessho in an interview with the media. "The war is creating inflation in the economic environment, and if inflation expectations really start to soar, the risk of falling behind will increase." Bessho, who left the Bank of Japan in 2024, stated that recent economic indicators released by the central bank indicate its intention to raise rates, adding that despite tensions in the Middle East and soaring oil prices, earlier this week, the Bank did not downgrade its assessment of the regional economy.