The CEO of Resona Holdings stated that if the Bank of Japan decisively raises interest rates, it would be more beneficial for the bond market.

The CEO of Resona Holdings, Masahiro Kihara, stated that if the Bank of Japan takes a more significant rate hike, it may be more beneficial for the country's bond market. Kihara, in an interview with the media on Wednesday, said he expects the Bank of Japan to raise interest rates in June or July to address inflation. He pointed out that unless the rate hike is substantial, the impact on the market itself may be limited. "If they take more bold action, such as a 50 basis point rate hike at once, it may be more beneficial for the bond market," he said. When asked if the central bank is "behind the curve," Kihara responded, "It's a tricky question, I think to some extent." Despite concerns that the Middle East conflict could weigh down Japan's economic recovery, investors still expect the Bank of Japan to raise rates as early as June. With worries about inflation rising due to the Iran war and concerns about fiscal policy, Japanese government bond yields have risen significantly in recent weeks.