Mizuho reviews the June 2026 Bank of Japan MPM, which saw a rate hike to 1% and no major surprises. The firm maintains its existing rates strategy and outlook, expecting continued gradual tightening through year-end.
Key Takeaways
- 1.The Bank of Japan raised the policy rate to 1% and announced a plan to halt tapering of JGB purchases by April 2027, results largely in line with expectations.
- 2.Mizuho's rates strategy team has maintained its outlook for monetary policy, expecting the BOJ to raise rates again in December.
- 3.The 10y JGB yield is expected to remain rangebound through year-end, with limited further upside as the market has already priced in significant future tightening.
Table of Contents
- June MPM gives no need to revise market expectations
- Meeting results and vote count
- Key points in official statement
- Deputy Governor Uchida’s press conference
- Summary and outlook
- DEVELOPMENTS THIS WEEK AND IMPLICATIONS FOR RATES OUTLOOK
- SHORT-TERM OUTLOOK (ONE WEEK – ONE MONTH)
- MEDIUM-TERM OUTLOOK (SEVERAL MONTHS – ONE YEAR)
- Risk scenarios
- Envisaged timetable for BOJ JGB-buying operations
- Yen rates relative value and investment strategies
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Authors
Noriatsu TanjiYuhi Kawano
Securities
10y JGB10y UST
Themes
Bank of Japan Monetary PolicyYield Curve DynamicsMacroeconomic Inflation Outlook
Regions
Asia PacificNorth AmericaJapanUnited States