Economist: Bank of Japan Has Not Yet Abandoned Its Tightening Stance

DeepFlowTech · 2026-03-19T03:30:31+00:00

Bank of Japan economist Masato Koike stated that despite yen weakness and market instability, the BOJ hinted at continued rate hikes and has not abandoned its tightening stance. Market volatility and Middle East situations will not change its basic policy direction. Focus remains on Governor Ueda's stance and his relationship with the government.

DeepFlowTech

2026-03-19 03:30:31

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Deep Tide TechFlow News, March 19 — Research institution Sompo senior economist Masato Koike stated that the yen’s weakness remains a factor, and despite risks, the Bank of Japan continues to hint at further rate hikes. Even considering differing opinions among committee members (including Takada So and Tamura Naoki), this view is still reflected. Overall, the clearest message is that the Bank of Japan has not abandoned its tightening stance. In the financial markets, the BOJ generally believes that it is difficult to push for rate hikes when market conditions are highly unstable.

Current market volatility, along with escalating tensions in the Middle East, may not change its basic policy. I will closely watch Governor Ueda’s (at the press conference) stance for more firmness and how he responds to questions about his relationship with the Kashiwa government. (Jin10)

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