BoJ preview: no changes expected amid lack of inflation progress and geopolitical risk

The Bank of Japan is expected to keep interest rates unchanged at 0.75% amid lack of progress on the inflation front and downside risks to the economy stemming from the US-Iran war The Bank of Japan is expected to keep interest rates unchanged at 0.75% amid lack of progress on the inflation front and downside risks to the… The Bank of Japan (BoJ) is widely expected to keep interest rates unchanged at 0.75%, as there’s still limited progress on inflation and growing downside risks to the economy linked to the ongoing ... The Bank of Japan (BoJ) is widely expected to keep interest rates unchanged at 0.75%, as there’s still limited progress on inflation and growing downside risks to the economy linked to the ongoing US-Iran conflict. The latest Tokyo CPI report showed inflation easing further in February, with core inflation slipping below the BoJ’s 2% target. While higher energy prices could push headline inflation up in the coming months, the prolonged… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.