MUFG expects the Bank of Japan to keep its policy rate unchanged at 0.5% at its June monetary policy meeting, citing a highly uncertain economic outlook.
- The bank also sees no shift in the current roadmap for reducing bond purchases and believes there is little pressure to adjust the pace of tapering in fiscal year 2026.
- However, MUFG notes that the central bank may opt to scale back the pace of reductions slightly—potentially trimming quarterly cuts in its monthly bond purchases to ¥300 billion starting in FY2026.
- This move would be aimed at signalling a stronger commitment to market stability in the Japanese government bond (JGB) market.
The Bank of Japan announcement is expected some time in the 0230 - 0330 GMT time window. Bank of Japan Governor Ueda's news conference will follow at 0630 GMT.
Earlier:
- BOJ officials expect the benchmark interest rate left at 0.5%
- BOJ now expected to keep interest rates unchanged through to year-end - survey
- BOJ expected to hold rates, slow pace of bond tapering amid market strain
Bank of Japan
