The latest financial data shows that the Bank of Japan is facing a tricky balance between inflationary pressures and economic growth slowdown. Analysis points out that over the past year, the price of rice in Japan has doubled, while the core inflation rate has consistently reached or exceeded the policy target level of 2% since April 2022.

At the same time, Japan's economic conditions are deteriorating, with GDP (GDP) contracting by 0.2% annualized in the first quarter and real wages falling 1.8% year-on-year, further exacerbating the central bank's policy dilemma.

Market analysts expect that, in this complex situation, the Bank of Japan is very likely to maintain the current interest rate level, but may issue a relatively hawkish policy guidance, which is expected to provide some support for the persistently weak yen.

Investors and economists are closely monitoring the upcoming policy statement and the subsequent press conference comments, looking for any hints or signals that the Bank of Japan may adopt tightening monetary policy in the future.