French-Brazilian Bank: Inflation transfer pressure remains high, Japan may pull the trigger on raising interest rates in April.

Economists from BNP Paribas in Paris, France, have stated that despite the high level of uncertainty in the Middle East situation, the minutes of the Bank of Japan's March meeting still signal a possible rate hike in April. They pointed out, "In the current economic environment, the significant pass-through of rising import costs to prices is very apparent. Therefore, many members of the policy committee may feel it is necessary to prioritize the risk of upward inflation expectations." They added, "If the tension in the Middle East eases in the coming weeks and oil prices trend towards stability to reduce economic downside risks to some extent, the Bank of Japan may find it easier to shift towards a rate hike at the April meeting."