Bank of Japan Watch

HSBC anticipates the Bank of Japan will raise interest rates by 25bp at the June 16 meeting to 1.00%. The report also suggests the bank will likely pause its JGB purchase tapering program after March 2027.

Key Takeaways

• 1.HSBC expects the Bank of Japan (BoJ) to raise its policy rate by 25bp at the 16 June meeting to 1.00%.
• 2.The BoJ is expected to maintain its current JGB tapering pace until March 2027, then halt reductions.
• 3.Policy decisions are driven by rising inflation risks and the need to stabilize the yen.

Table of Contents

• A widely expected rate rise in June
• Reviewing the JGB taper plan
• Fireworks in June
• What will the BoJ decide to after March 2027?
• Disclosure appendix