The Bank of Japan (BOJ) is facing mounting pressure to tighten monetary policy sooner rather than later, as policymakers grow increasingly concerned that surging oil prices linked to the Iran conflict could push inflation higher and keep price pressures elevated for longer, Reuters reported.
According to a summary of opinions from the BOJ’s April policy meeting, several board members argued in favour of raising interest rates in the near term, with at least one policymaker suggesting that a move could come as early as the June policy meeting. The discussions reflected a clear hawkish tilt within the central bank, even as uncertainty surrounding the geopolitical situation in the Middle East continues to cloud the global economic outlook.
