Mizuho markets head expects BOJ to raise rates soon, more often
Many Japanese financial institutions remain reluctant to wade back into the nation's bond market as rates rise and inflation persists.
Mizuho Financial Group believes the Bank of Japan will accelerate interest rate increases soon, with the next hike potentially occurring as early as next month. This prediction comes from weak yen and rising inflation, prompting the central bank to act more swiftly. Kenya Koshimizu, co-head of Mizuho's global markets division overseeing a ¥41 trillion ($257 billion) securities portfolio, expects longer-term rates to continue climbing after 10-year Japanese government bond (JGB) yields reached a 30-year peak this week.
However, Mizuho, Japan's third-largest lender, plans to avoid purchasing government bonds except for inflation-linked notes and those maturing within a year, according to Koshimizu. "We've limited the amount of interest-rate risk we take, and so our portfolio's duration is very short," he stated in a Tokyo interview.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
