Despite the ongoing Middle East crisis, confidence among Japan's large manufacturing enterprises has improved for the fourth consecutive quarter, supporting the Bank of Japan's stance on potential interest rate hikes. According to Jin10, the Bank of Japan's Tankan survey released on Wednesday showed that the business sentiment index for March increased to 17 from a revised 16 in the previous quarter. The index for large non-manufacturing businesses remained steady at 36, near its strongest level since 1991. However, the outlook for large enterprises has weakened, with the manufacturing sentiment index slightly declining to 14 and non-manufacturing dropping from a revised 31 to 29. The Tankan survey is one of the most closely watched indicators by the Bank of Japan, indicating that Japanese business optimism remains stable for now. If the Bank of Japan decides to raise interest rates after the impact of the Iran conflict becomes clearer, this could be one of the factors cited. Traders currently estimate a 69% probability of a rate hike later this month.