The Bank of Japan (BOJ) is expected to raise interest rates by July due to increasing oil costs from the Middle East war and increasing inflationary pressure. Ex-BOJ board member Seiji Adachi said the central bank's short-term policy rate would likely rise from 0.75% to 0.25%. However, he added that the chance of a rate hike in April is 50-50 due to the uncertainty surrounding the Iran war's economic impact. The decision could complicate the BOJ's decision as rate hikes would increase corporate borrowing costs, which could conflict with the administration's push to boost investment in growth areas.