Goldman Sachs: Bank of Japan will continue to hold its ground, with the next rate hike scheduled for January next year

According to BlockBeats, on June 17th, Goldman Sachs expects that economic activity and price indicators released since the April monetary policy meeting will continue to show a strengthening of the domestic virtuous cycle in Japan, but the impact of tariff increases may be realized in the future. From a risk management perspective, in the face of high uncertainty, it is expected that the Bank of Japan will maintain its policy interest rate unchanged in June while maintaining its stance of gradual interest rate hikes. Goldman Sachs believes that the next policy rate hike will be in January 2026. As for the mid-term evaluation of the Bank of Japan on the current plan of reducing the purchase of Japanese treasury bond bonds (as of March 2026), it is expected that the current plan will remain unchanged. Afterwards, it is expected that the Bank of Japan will continue to reduce the scale of bond purchases within a year, although the pace will be slower, ultimately reaching a level of about 2 trillion yen per month. This is the scope of the Bank of Japan's response to a survey conducted in advance among market participants, which is also consistent with the level before the start of QQE. (Golden Ten)