Goldman Sachs predicts that the Bank of Japan will maintain the policy interest rate in June, and the next rate hike may be postponed until January 2026.
According to reports, Goldman Sachs expects that the economic activity and price indicators released since the April monetary policy meeting continue to show an enhancement of the virtuous cycle within Japan. However, the impact of tariff increases may be realized in the future. From a Risk Management perspective, amid high uncertainty, it is anticipated that the Bank of Japan will maintain its policy interest rate unchanged in June while sustaining its stance on gradual rate hikes.
Goldman Sachs believes that the next policy interest rate hike will be in January 2026. Regarding the Bank of Japan's mid-term assessment of the current Japanese government bond purchase reduction plan (up to March 2026), the existing plan is expected to remain unchanged. Subsequently, the Bank of Japan is anticipated to continue reducing the scale of bond purchases over the course of a year, although the pace will be slower, ultimately reaching a level of approximately 2 trillion yen per month. This is in response to a survey conducted by the Bank of Japan with market participants in advance, and is consistent with the levels prior to the start of QQE.
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BrokenDAO
· 6h ago
Typical daily central bank inertia and conservatism, the currency trap must continue.
Reply0
MidnightMEVeater
· 6h ago
Is the sandwich with yen delicious?
Reply0
StablecoinArbitrageur
· 6h ago
*sigh* their risk models are clearly overlooking term structure distortions
Reply0
TokenAlchemist
· 6h ago
meh... tradfi being tradfi. alpha's clearly in the defi liquidity vectors rn
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BlockchainFoodie
· 6h ago
slow cooked monetary policy... like a perfectly aged sake tbh
Reply0
GhostAddressMiner
· 7h ago
The Central Bank's dark room operations remain so obscure, huh?
Reply0
LiquidatorFlash
· 7h ago
Inflation data is uncertain, will there be a rate hike in 2026?
Goldman Sachs predicts that the Bank of Japan will maintain the policy interest rate in June, and the next rate hike may be postponed until January 2026.
According to reports, Goldman Sachs expects that the economic activity and price indicators released since the April monetary policy meeting continue to show an enhancement of the virtuous cycle within Japan. However, the impact of tariff increases may be realized in the future. From a Risk Management perspective, amid high uncertainty, it is anticipated that the Bank of Japan will maintain its policy interest rate unchanged in June while sustaining its stance on gradual rate hikes.
Goldman Sachs believes that the next policy interest rate hike will be in January 2026. Regarding the Bank of Japan's mid-term assessment of the current Japanese government bond purchase reduction plan (up to March 2026), the existing plan is expected to remain unchanged. Subsequently, the Bank of Japan is anticipated to continue reducing the scale of bond purchases over the course of a year, although the pace will be slower, ultimately reaching a level of approximately 2 trillion yen per month. This is in response to a survey conducted by the Bank of Japan with market participants in advance, and is consistent with the levels prior to the start of QQE.