Mizuho Predicts Faster Interest Rate Hikes by Bank of Japan
· Business · LiveMint, Bloomberg
Mizuho Financial Group Inc. expects the Bank of Japan to accelerate its pace of interest-rate hikes, with the next increase potentially occurring as early as next month. Kenya Koshimizu, co-head of the global markets division, stated that the central bank may shift to a three-month interval for policy adjustments to combat persistent inflation and a weak yen. While 10-year Japanese government bond yields recently reached a 30-year high, the lender plans to keep its own portfolio duration short to mitigate risk. The Japanese government, led by Prime Minister Sanae Takaichi, reportedly supports near-term rate increases to stabilize the currency.
Why it matters
Faster rate hikes in Japan could influence global capital flows and impact the yen's value, which is closely watched by international investors and central banks.
Read the original report — LiveMint
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