Former Central Bank economist: The Japan-US peace agreement will not change the Japanese Central Bank's interest rate hike plan.

Kiyohisa Goto, former chief economist of the Bank of Japan, said on Monday that the peace agreement reached between the US and Iran is unlikely to shake the Bank of Japan's established plan to raise interest rates twice this year. Goto stated that the current pressure from rising prices has intensified, prompting the Bank of Japan to raise its short-term policy rate from 0.75% to 1% on Tuesday. Originally planned for April, this rate hike was delayed due to the impact of the Middle East conflict. Both the US and Iran have stated that they have reached a ceasefire framework agreement, agreeing to lift the US blockade on Iran and reopen the Strait of Hormuz. This preliminary agreement has led to a decrease in international oil prices. Goto believes that if the peace agreement allows the Strait of Hormuz to reopen smoothly, it may relieve the pressure on the Bank of Japan, preventing it from having to aggressively raise interest rates to control inflation beyond expectations.