Pushing back our BoJ rate-hike call from April to June MPM
Key points
- We now expect BoJ's next rate hike at June rather than April MPM; maintaining 1.5% terminal rate forecast
- Japanese government pushing back on rate hikes, no resolution to Middle East conflict in sight; BoJ assessing persistence/impact of shock
- Real interest rates still "significantly low"; expecting BoJ to stick with rate-hiking policy, look for right timing