The Bank of Japan's April rate hike is still possible.

Mitsubishi UFJ Morgan Stanley Securities, in a report, stated that despite the tense situation in the Middle East, the Bank of Japan is still likely to raise interest rates at its April meeting. Analysts at the institution said that during periods of inflation, central bank policy must shift its focus from supporting short-term economic sentiment to anchoring inflation expectations, in order to ensure medium- to long-term economic stability.