The Bank of Japan is anticipated to leave interest rates unchanged at its upcoming Tuesday meeting, Bloomberg News reported on Monday.
Only a few weeks ago, many market participants and analysts expected Ueda and the board to proceed with policy normalization by raising rates after their two-day session, the news wire said.
However, those expectations faded when U.S. President Donald Trump's conflict with Iran drove oil prices higher, reducing the market's probability of a rate hike to just 7%, the publication said.
Consequently, many economists have revised their forecasts, now pointing to a potential rate increase in June instead, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)