Daiwa Securities: The Bank of Japan's move to maintain a slightly tight monetary policy stance has paved the way for a rate hike in June.

Kento Minami, economist at Yamato Securities, stated that the Bank of Japan's policy decision is a "tightly dovish standstill," opening the door for a rate hike in June. The Bank of Japan raised its price forecast in its quarterly report, indicating that the basic inflation is expected to reach its target between the second half of fiscal year 2026 and fiscal year 2027. Minami said, "The latest price outlook shows a high level of vigilance towards the upside risks to inflation. The dovish tone of the outlook report highlights the Bank of Japan's firm commitment to further rate hikes."