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 accommodative 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 by continued government and Bank of Japan policy support.

2026-06-16

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 accommodative 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 by continued government and Bank of Japan policy support.