Decade-high inflation will not impact BoJ policy

The Bank of Japan remains more likely to cut than hike rates this year despite inflation climbing to its highest level since the 1990s in February, according to analysts.

Japanese inflation hit 1% last month, on the back of rising oil and food prices. But commentators warned that the acceleration would have little impact on the monetary policy debate.

"The acceleration in the headline CPI figures is unlikely to provide much fuel for the Bank of Japan hawks, given the lack of a more compelling