April 28 (Reuters) - The Bank of Japan kept interest rates steady on Tuesday, but three of the nine-member board proposed hiking borrowing costs, signalling policymakers' concerns over inflationary pressures from the Middle East conflict.

Frustrated mortgage holders are facing the prospect of a much larger interest rate hike in May, with the US and Iran war expected to force the central bank to rapidly lift rates.

As the Bank of Japan prepares to announce its interest rate decision, the potential implications of the BoJ's policies amidst global tensions, particularly in West Asia, create uncertainty for investors.

The Bank of Japan (BOJ) is widely expected to keep interest rates unchanged at its April 28 policy meeting, maintaining the benchmark short-term rate at 0.75%. This would mark the third consecutive pause following a

Trump bought up to $161 million in bonds in March, an ethics filing shows, ahead of the Fed's April rate decision.

The April FOMC meeting could be Powell's last as Fed chair as he is set to resign in May before the June 16-17 meeting.

The USD/CHF pair gathers strength near 0.7865 during the early European session on Tuesday. The US Dollar (USD) edges higher against the Swiss Franc (CHF) due to the stalled US-Iran ceasefire and the closure of the Strait of Hormuz.

The Bank of Canada will share how it’s thinking about price pressures from the Iran war on Wednesday when it publishes a new monetary policy report and makes its next interest rate decision.

The Bank of Canada cut its key interest rate to 2.50 per cent on September 17 – its first cut after months of pause. The next interest rate announcement is October 29, 2025.