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BOJ's Himino says Mideast developments will factor into rate decision

  • BOJ deputy says rate decisions will hinge on fallout from the Middle East conflict, which could sharply change economic and inflation forecasts.
  • Policymakers still expect to keep raising rates to tame inflation, and markets see about an 80% chance of a rate hike at the June 15–16 meeting.
  • Surging fuel costs from the conflict have pushed 10‑year JGB yields to around 2.8%, complicating Japan’s inflation-versus-growth trade-off.
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