{"text":[[{"start":9.75,"text":"The Bank of Japan has held its benchmark interest rate despite forecasting a sharp rise in inflation as the war in the Middle East clouds the global economic outlook and tests the country given its exposure to rising energy prices."}],[{"start":23.6,"text":"The BoJ’s decision on Tuesday to keep rates at about 0.75 per cent was in line with market expectations, but came via a six to three vote of the Monetary Policy Committee — the biggest divergence of opinion under governor Kazuo Ueda, and since the launch of the bank’s negative interest rate policy in 2016. "}],[{"start":45.400000000000006,"text":"The three dissenting members called for an immediate rate increase to 1 per cent. Traders are increasingly convinced that rates will rise after the next meeting in June, as the central bank resumes its effort to “normalise” monetary policy from decades of low rates and anaemic price growth."}],[{"start":63.300000000000004,"text":"Ueda is due to give a press conference later on Tuesday."}],[{"start":66.65,"text":"In the BoJ’s outlook statement, published alongside the rate decision, the bank warned that Japan’s economic growth was likely to slow in the current fiscal year. It also significantly raised its inflation forecast over the same period."}],[{"start":80.30000000000001,"text":"The committee said “core” CPI inflation, which excludes fresh food, was expected to reach 2.8 per cent for the current fiscal year ending in March 2027, up from its previous forecast of 1.9 per cent issued in January."}],[{"start":95.85000000000001,"text":"“The rise in crude oil prices reflecting the impact of the situation in the Middle East is expected to push down corporate profits and households’ real income,” the BoJ said."}],[{"start":106.25000000000001,"text":"The statement added that the risks to economic activity were “skewed to the downside and risks to prices are skewed to the upside”."}],[{"start":113.45000000000002,"text":"Japan is particularly vulnerable to energy shocks from the crisis in the Gulf. The country is heavily reliant on imported energy, and sources more than 90 per cent of its crude from the Middle East."}],[{"start":124.65000000000002,"text":"The BoJ’s hawkish outlook, which pushed the yen higher against the US dollar, cited various risks from the war in the Middle East, including large-scale disruption to supply chains, with severe effects on production for Japanese companies. Some material manufacturers have already reduced factory activity, the bank said."}],[{"start":143.45000000000002,"text":"The BoJ is the first of four major central banks making interest rate decisions this week."}],[{"start":148.75000000000003,"text":"The US Federal Reserve, the European Central Bank and the Bank of England are expected to take the same line as the BoJ and postpone interest rate moves as they wait for greater clarity on the war-related risk of prolonged inflation."}],[{"start":163.75000000000003,"text":"Marcel Thieliant, head of Asia-Pacific at Capital Economics underlined the BoJ’s upward revision of inflation forecasts, including that inflation will average 2.2 per cent in fiscal 2028."}],[{"start":176.95000000000002,"text":"“Baring a renewed escalation in the Middle East, the bank will probably lift its policy rate again at its next meeting in June,” he wrote in a note to clients."}],[{"start":185.75000000000003,"text":"In the hours before the BoJ’s decision, with the yen trading at about ¥159.50 against the US dollar, Japan’s finance minister Satsuki Katayama told reporters that the government was ready to act against sharp moves in the currency."}],[{"start":198.95000000000002,"text":"The comments reinforced weeks of warnings by Japanese authorities as the currency has dipped towards levels where the finance ministry has directly intervened in the past."}],[{"start":208.85000000000002,"text":"Japan’s stocks slid on the news. The widely watched Nikkei 225 Average had surged to an all-time high of 60,537 points on Monday, but was trading almost 1 per cent lower on the day when it reopened after the lunch break."}],[{"start":223.85000000000002,"text":"The broader Topix, which has a heavier weighting of banks and financial companies, was up 0.9 per cent"}],[{"start":238.65000000000003,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1777356753_2100.mp3"}