BOJ may raise rates to 0.5% by March ’25 – Mizuho Bank CEO

The Bank of Japan (BOJ) may increase interest rates twice by March, reaching 0.5 per cent, as predicted by Mizuho Financial Group’s banking arm chief, Masahiko Kato.

However, Kato emphasises the need for a gradual approach. Rapid rate hikes, aimed at arresting the weakening yen (currently at a 38-year low against the dollar), could jeopardise the recent economic recovery.

Inflation presents challenges but also drives growth strategies like M&A and global expansion for businesses, Kato said.

Mizuho Bank targets mid-cap listed companies facing labour shortages, offering financing and advisory services to support their growth initiatives.

In 2023, Mizuho created a team to support mid-cap growth, which has since expanded. Kato stresses the importance of companies enhancing their corporate value, in line with the Tokyo Stock Exchange’s emphasis on better corporate governance.

Attribution: Reuters