Despite rising fuel prices due to the Iran war, a top central bank official said the Bank of Japan will hike interest rates if its economic estimates hold.

We may raise interest rates if our economic and pricing estimates come true “Nakamura said future rises will depend on economic, price, and financial conditions. Oil-driven inflation pressure may increase.

We will use current data to update our economic, pricing, and risk evaluations at each policy meeting to make educated judgments.

Nakamura’s statements demonstrate the BOJ’s determination to mildly boost rates despite criticism. Fuel and import prices due to a weak yen are rising domestic inflation, testing the central bank’s balance.

For the first time since September 2023, trust fell across all 10 sectors in the online poll held between March 17 and 31 – weeks after the U.S.-Israeli airstrikes on Iran on February 28. The yen has fallen nearly 2% against the dollar since the war.According to a fertilizer business poll, rising crude oil prices have raised input costs and hindered product flow.