Even when markets are volatile and there is a lot of uncertainty, we would still make necessary decisionAt times, we might need to shift policy precisely because markets are volatileIt's not as if we would hold off on changing policy just because markets are volatileAppropriate to keep monetary conditions accommodative and gradually raising interest rates towards neutralGood chance that underlying inflation will accelerate moderatelyExpects Japan's consumer price inflation to stay below 2% for some period of timeBut even if headline inflation falls below 2%, we could raise interest rates if we judge that underlying inflation is accelerating towards our price targetTo keep things short, he's mainly just leaving the door open for another rate hike either in March or April potentially. Typically, you would see the BOJ opt to play it safe more often than not. That especially when something as serious as the US-Iran conflict, which has major reverberations for markets in general.However, Himino surely realises that their timing window might be closing if they are to want to raise interest rates further this year. The central bank and the current board looks to be wanting to use the outcome of the spring wage negotiations as the launching platform for another rate hike. And if so, they might want to get a move on before Takaichi gets her way in adding two board members that could block that decision in the months ahead. This article was written by Justin Low at investinglive.com.