BOJ likely to wait and see due to Hormuz uncertainty.
The Iran war and Strait of Hormuz blockade put the BOJ in a difficult situation, facing external inflation risk and yen weakness. The uncertainty over the strait presents a wide range of possible outcomes in the next 2-3 months. In such an environment of high uncertainty, the normal recipe for policy exit is to 'wait and see', suggesting the BOJ is unlikely to act hastily at its upcoming meeting.