Mizuho Expects BoJ Rate Hike at June Meeting

Mizuho forecasts the Bank of Japan will raise interest rates at its June meeting, coinciding with an interim assessment of bond purchase reduction plans. The bank expects BoJ to maintain current tapering through Q1 2027 before potentially slowing the pace from JPY0.2 trillion to JPY0.1 trillion quarterly decrements. JPY pairs could see increased volatility as rate hike expectations build toward June. Higher Japanese rates typically strengthen the yen against major currencies, particularly impacting USD/JPY given the significant interest rate differential.