Citigroup strategists said the Bank of Japan raised its policy rate by 25 bps to
1.00% and will stop tapering long-term JGB purchases from April 2027. They said
the move maintains an accomodative stance while dampening FX swings and
long-term yield volatility. Citigroup forecasts Japanese corporate profits to
grow about 10% p.a., supported by strong price pass-through that should boost
margins and continued by government and Bank of Japan policy support.
