Japan Macro Weekly

Mizuho forecasts the Bank of Japan will continue its interest rate hiking cycle, targeting 1.5% amidst persistent inflationary pressures driven by energy costs.

Key Takeaways

• 1.The BOJ is expected to raise the policy rate to 1.5% in phases, with a likely hike in June 2026.
• 2.Inflationary pressures remain due to energy costs, though the BOJ's preferred core inflation measure is expected to dip below 2% temporarily.
• 3.Geopolitical tensions in the Middle East present significant upside risks to commodity prices and potential economic stagnation.

Table of Contents

• Global economy and finance: Weekly watch (15 June)
• Review of key indicators and events
• Economic indicators
• Economic outlook (as of 15 June)

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