Mizuho Financial Group¡¯s chief executive officer suggested that the Bank of Japan might be better off considering an outsized interest-rate increase to combat inflation ¡ª a move the central bank hasn¡¯t undertaken since the country¡¯s asset bubble in 1990.
Masahiro Kihara expects the BOJ to raise rates in June or July, he said in an interview on Wednesday. Whether they do or not is unlikely to have a big impact on the market unless the increase is large, he said.
¡°If they move boldly¡± with a 50 basis-point hike, ¡°that would be better for the bond market maybe,¡± he said. Asked whether the central bank is behind the curve, Kihara said it was a ¡°tricky question. A little bit I think.¡±
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