BOJ likely to freeze key rate amid growing uncertainty, says former official

The Bank of Japan (BOJ) is likely to maintain a wait-and-see approach amid high macroeconomic uncertainty, according to Kazuo Momma, a former policy board member of the central bank. In an interview with Bloomberg, Momma said the situation in the Middle East complicates the BOJ's policy response. He noted that the range of possible scenarios over the next two to three months is extremely wide, and in such an uncertain environment, a central bank's typical response is to monitor developments. Momma also suggested that the BOJ's lack of a clear message on the short-term interest rate trend indicates it has not yet decided what action to take at its meeting on April 27-28. He emphasized that the decision at this month's meeting will be a close call.