BOJ Expected To Hike At June Meeting

Mizuho anticipates the Bank of Japan will raise the policy rate to 1.00% at its June 2026 meeting, citing increased support among board members and political acceptance. Future guidance is expected to remain hawkish as the BOJ concurrently assesses its bond-tapering strategy for 2027.

Key Takeaways

• 1.The Bank of Japan is highly likely to raise the policy interest rate from 0.75% to 1.00% at the June 2026 meeting.
• 2.The administration appears likely to support or at least accept a BOJ rate hike.
• 3.The BOJ is expected to maintain current bond tapering plans through Q1 2027, with a possible slowing of reductions starting in Q2 2027.

Table of Contents

• BOJ expected to hike at June meeting; focus on market reaction and tapering plans
• Anticipated communication from Governor Ueda and market reaction
• We expect BOJ to slow tapering process from Apr–Jun 2027 onward
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