Potential Ramifications Of Public-Private Investment Plan For Financial Markets And Japan Fiscal Position

Mizuho analyzes the potential market and fiscal impact of a JPY370 trillion public-private investment plan proposed by Prime Minister Takaichi. Simultaneously, it evaluates the BOJ's hawkish stance toward normalization.

Key Takeaways

• 1.The Japanese government proposed a public-private investment plan exceeding JPY370 trillion through FY2040, which may pressure JGB issuance and domestic interest rates.
• 2.BOJ policy remains on a 'standardly hawkish' path, with expectations for the next rate hike in December 2026.

Table of Contents

• Potential ramifications of JPY370 trillion+ public-private investment plan for financial markets and Japan's fiscal position
• Reviewing BOJ Governor Kazuo Ueda's 24 June address
• Important Disclosure Information
• Analyst Certification
• Disclaimer

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