The Bank of Japan hints at uncertainty regarding interest rate hikes. How to balance economic risks amid inflationary pressures? In its latest two quarterly regional economic reports, the BOJ skillfully avoided overly fueling market expectations for rate hikes. Although there is a 66% market expectation of a rate increase on April 28, the central bank did not provide a clear signal in the reports and remains highly cautious about raising rates. The reports mention that current uncertainties are intensifying, with rising prices—especially energy costs—negatively impacting corporate profits and private consumption. Meanwhile, many reports indicate that companies are passing on increased costs for labor, logistics, and other expenses to product prices. Nevertheless, they are still adopting strategies such as limiting price increases and launching low-cost products to cope with consumer inflation fatigue.