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2026-05-27 08:51:31
【Mizuho CEO: A large interest rate hike by the Bank of Japan (e.g., 50 basis points) would be more beneficial to the bond market】 (1) Masahiro Kihara, CEO of Mizuho Financial Group, said that a larger interest rate hike by the Bank of Japan would likely be more beneficial to the country's bond market. (2) He expects the central bank to raise interest rates in June or July to combat inflation, and pointed out that unless the rate hike is large, the impact of raising rates on the market itself is limited. He said, "If a bolder move is taken, such as a 50 basis point rate hike at once, it may be more beneficial to the bond market." (3) When asked if the central bank was "lagging behind the situation," Kihara responded, "somewhat." Despite the possibility that the Middle East conflict could drag down Japan's economic recovery, investors still expect the central bank to raise interest rates as early as June. (4) Japanese government bond yields have risen significantly in recent weeks due to concerns about rising inflation caused by the war in Iran and doubts about fiscal policy.
