March BoJ MPM preview: How will BoJ address stagflation risks?
Key points
- BoJ expected to keep its policy interest rate unchanged at its March 18-19 meeting; possibility that impact of Middle East situation will be factored into Bank's assessments of the economy
- Focus on BoJ Governor Ueda's press conference; how will BoJ address risks of an economic downturn and higher-than-expected inflation?
- With "real interest rates at extremely low levels," BoJ expected to proceed cautiously with rate hikes to avoid falling behind the curve