IMF urges BOJ to keep raising rates even as Iran war poses new risks
Why it matters: The **BOJ** faces pressure to raise rates by April, impacting **Japan's** monetary policy and **retirees'** inflation fears.
- IMF urges the BOJ to continue raising interest rates, even amid new risks posed by the Iran war.
- Market expectations anticipate the BOJ will raise interest rates as soon as April due to mounting inflationary pressure.
- The US saw an unexpected jobs surge in March, according to BBC Business, despite the ongoing Iran war.
- The Iran war is adding to inflation fears for retirees, as reported by MarketWatch, and is reshaping global aviation, per Japan Times.
- Japan is cautious about asking its public to conserve energy as the Iran war drags on, notes Japan Times.
Despite new risks from the ongoing Iran war, the IMF is urging the Bank of Japan (BOJ) to continue raising interest rates, aligning with market expectations for a hike as early as April due to inflationary pressures. This comes as the war unexpectedly coincides with a US jobs surge in March, yet adds to inflation fears for retirees and reshapes global aviation, while Japan remains cautious about energy conservation.
