Japan Economic Flash: BOJ June MPM Review

Goldman Sachs now expects a Bank of Japan rate hike in June 2026, driven by a hawkish shift in Governor Ueda's rhetoric. They anticipate steady, semi-annual hikes toward a 1.5% terminal rate by mid-2027.

Key Takeaways

• 1.Goldman Sachs changed its expectation from a July to a June rate hike for the Bank of Japan.
• 2.The terminal policy rate is forecasted at 1.5% by July 2027.
• 3.The Bank of Japan is expected to maintain its current JGB purchase plan until March 2027.

Table of Contents

• BOJ June MPM Review: June Rate Hike, Followed by Roughly Semi-annual Hikes