Daiwa Securities economist Kento Minami said the Bank of Japan may still view policy rates as far below neutral, noting the BOJ reiterated after Tuesday's hike that financial conditions remain accommodative. Minami said the BOJ's basic policy stance

2026-06-16

Daiwa Securities economist Kento Minami said the Bank of Japan may still view policy rates as far below neutral, noting the BOJ reiterated after Tuesday's hike that financial conditions remain accommodative. Minami said the BOJ's basic policy stance has been largely unchanged since April, but added the BOJ now judges core consumer inflation could exceed its 2% price-stability target—implying a faster pace of rate hikes if upside risks materialize. Investors generally expect roughly one rate increase every six months in the baseline scenario.

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