Daiwa Securities: Japan's fiscal expansion and weak yen may prompt the central bank to raise interest rates again.

Economists at Daiwa Securities suggest the Bank of Japan may raise policy rates again between April and June, potentially defying previous expectations. In a research report, economists noted, "Fiscal expansion and a weaker yen have exacerbated market concerns about rising prices, prompting calls for an earlier rate hike." They added that since Bank of Japan Governor Kazuo Ueda has hinted at closely monitoring price adjustments by Japanese companies in April, the central bank's branch governor meeting that month, along with April's CPI data for the Tokyo area, could be key factors in determining the next rate hike. (Jinshi)