Japan Macro Update

Mizuho Securities notes increased likelihood of a BOJ rate hike in June following reports of US encouragement for policy normalization. The US is concerned that Japanese inaction could trigger global market disruptions and inflationary pressure.

Key Takeaways

• 1.Recent reports suggest US support for BOJ policy normalization, increasing the probability of a rate hike in June.
• 2.The Bank of Japan is considering a 25bp rate hike to 1.0% in June, with potential for further hikes later this year.

Table of Contents

• News reports offer indications of US support for BOJ policy normalization efforts
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