Source: <i>Insider</i> According to sources: Bank of Japan considers rate hike in June, could raise rates again in 2026

BlockBeats News, June 4th, according to sources familiar with the matter, Bank of Japan officials plan to discuss raising the benchmark interest rate by 25 basis points this month and assess the possibility of further rate hikes later this year.

The sources stated that at the policy meeting concluding on June 16th, the Bank of Japan is highly likely to deliberate raising the policy rate to 1%. Officials believe that the current real interest rate remains low, and the risk of inflation continues to rise, providing room for further rate hikes. Due to the high uncertainty in the Middle East situation, central bank officials will continue to analyze various data and information until the last minute before finalizing the decision. The sources indicated that there may be some opposing views on the rate hike during the policy meeting, but they are not sufficient to change the decision to raise interest rates.

Another key agenda of this meeting is the Bank of Japan's latest plan to reduce bond purchases. Sources revealed that officials are inclined to slow down the current pace of bond reduction starting from April next year.