A panel has called on the Bank of Japan to proceed carefully with any interest rate increases.
The recommendation comes as Governor Kazuo Ueda considers a possible hike in the benchmark rate next month. The panel warned that such a move could encounter resistance from within the central bank.
Published reports indicate the advice focuses on maintaining a measured pace amid ongoing economic conditions in Japan.
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South Korea's Bank of Korea unanimously kept its benchmark interest rate unchanged at 2.5 percent on April 10, marking the seventh consecutive hold since July 2025 amid high uncertainty from the Middle East war, which has fueled inflation risks, growth slowdowns, and won weakness. Governor Rhee Chang-yong noted the won could strengthen quickly if tensions ease. The next policy meeting is May 28.
The Bank of Japan maintained its policy rate at 0.75% on March 19 amid growing Middle East uncertainty. The decision was widely expected by markets and central bank watchers.
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The Bank of Japan on April 28 kept its benchmark interest rate at 0.75% for the second consecutive meeting, as the war in Iran closed the Strait of Hormuz and spiked oil prices. The policy board voted 6-3, signaling potential hawkishness ahead.
The Japanese government expects its interest payments on outstanding debt to roughly double over the next four years due to the Bank of Japan's gradual rate hikes. Payments are projected at ¥21.6 trillion ($139 billion) in the year starting April 2029, up from the current year's budgeted ¥10.5 trillion.
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Tokyo's core consumer price index rose 1.8% in February, falling below the Bank of Japan's 2% target for the first time since October 2024. Prime Minister Sanae Takaichi's utility subsidies curbed household energy costs, posing a communication challenge for the central bank's planned interest rate hikes. The figure exceeded economists' median forecast of 1.7%.