Mitsubishi UFJ: Bank of Japan Expected to Normalize Policy as Early as 2024

According to a report by Kyodo News, Hiroyuki Seki, the Deputy President and Chief Global Market Strategist at Mitsubishi UFJ Financial Group, mentioned in an interview that the Bank of Japan might start the process of policy normalization as early as January to March 2024.

He expressed his belief that the Bank of Japan is “not far” from achieving its 2% inflation target, as wages are rising amid labor shortages and increased corporate pricing.

Additionally, he anticipates that the yield on the 10-year government bonds could reach a range of 0.7% to 0.8% in the coming autumn. This projection will be contingent on factors such as price trends, exchange rates, overseas interest rates, and the geopolitical situation.