Institutions: Bank of Japan expected to keep interest rates unchanged in March

In a report, Vincent Chung, portfolio manager at T. Rowe Price, stated that the Bank of Japan (BOJ) is likely to keep interest rates unchanged in March due to the need for time to reassess the current geopolitical situation. He believes the bank may take monetary policy action in April, as wage negotiation data will be available then. He noted that recent factors such as rising oil prices have exacerbated inflation risks, and persistently high oil prices could be a long-term drag on the BOJ's policy inaction. Chung also pointed out that the market may be concerned about potential yen intervention, but the recent yen depreciation is consistent with other foreign exchange peers. He added that if the BOJ sends a dovish signal at its March meeting, it could put further pressure on the yen. (Jinshi)