BOJ’s usual stance amid uncertainty is to hold, ex-official says

The Bank of Japan will hold a policy meeting on April 27 and 28, which "will be a close-call meeting,” an ex-official says
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The Bank of Japan’s usual approach to conducting policy at times of high uncertainty would be to wait and see, making the likely outcome of a meeting this month too close to call, according to a former executive director who oversaw monetary policy at the central bank.Developments in the Middle East are "putting the BOJ in a very difficult situation right now,” Kazuo Momma, the former BOJ official, said on Bloomberg TV Monday."There is a wide range of possible outcomes in the next two to three months,” Momma said
"In this kind of environment of uncertainty I think the normal recipe for any central bank is to just wait and see” how the situation is going to play out.Momma was speaking after the U.S
and Iran failed to reach an agreement over the weekend on ending the war, sending oil prices higher and Japan’s benchmark bond yields to the highest since 1997
President Donald Trump escalated the standoff on Sunday with a post on Truth Social warning that the U.S
will begin a full naval blockade of the strategic Strait of Hormuz.Momma said that a lack of a clear messaging from the BOJ regarding the near-term trajectory for rates suggests that the bank itself probably hasn’t decided what to do at the April 27-28 gathering.The April meeting "will be a close-call meeting,” Momma said.Pricing in the overnight swaps market shows that traders currently see a 44% chance of a hike
Late last week the percentage was around 60%.

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BOJ(https://www.japantimes.co.jp/tag/boj), Japanese economy(https://www.japantimes.co.jp/tag/japanese-economy), Iran(https://www.japantimes.co.jp/tag/iran)
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