Bank of Japan Likely to Raise Benchmark Rate in June, Former Board Member Says
Makoto Sakurai, who served on the Bank of Japan board from 2016 to 2021, said the central bank will probably increase its benchmark rate at the June 15-16 meeting. He stated that delaying action could leave policy behind the curve amid inflation pressures and uncertainties from the Iran conflict.
japantimes.co.jpThe Bank of Japan will probably raise its benchmark rate at its June 15-16 meeting, according to Makoto Sakurai, who served on the central bank's board from 2016 to 2021. Sakurai said in a Friday interview that officials need to act now to avoid falling behind in addressing inflation.
He added that missing the June window could force an indefinite postponement of the next rate increase because of uncertainties tied to the Iran conflict.
"They will probably raise rates this time," Sakurai said. "If they don't, their policy will fall into a state of being behind. " The former board member described the June session as a critical decision point for the central bank.
Key Facts
Story Timeline
2 events- May 29, 2026
Makoto Sakurai states BOJ will probably raise rates at June 15-16 meeting.
1 sourceJapan Times - May 23, 2026
Sakurai gives interview warning that delay risks indefinite postponement of next hike.
1 sourceJapan Times
Potential Impact
- 01
Markets may adjust interest-rate expectations ahead of the June 15-16 meeting.
- 02
Borrowing costs for Japanese households and businesses could rise if the rate is increased.
Transparency Panel
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