BOJ to Hold Rate at 0.75%, Eye 1% by June End

Tokyo, March 11 - The Bank of Japan is expected to maintain its key interest rate at 0.75 percent during its policy meeting next week, according to a Reuters survey of economists, with a majority anticipating an increase to 1.00 percent by the end of June despite ongoing tensions from the U.S.-Israeli conflict with Iran in the Middle East.

The poll, conducted on March 29, found unanimous agreement among all 64 respondents that the central bank would hold rates steady on March 19. However, 37 out of 62 economists forecasted the policy rate reaching 1.00 percent by June's end, a projection largely consistent with the previous month's survey. Among the 44 economists who specified a timing for the next hike, 32 pointed to June, followed by 30 for July and 27 for April.

The Middle East war has heightened global concerns over inflation, driven by surging oil prices that create supply shocks and threaten economic growth. Japan, which depends heavily on oil imports from the region, faces added pressure from elevated crude costs and a depreciating yen, both of which inflate import expenses. The yen has fallen about 1 percent against the U.S. dollar since the conflict began and more than...