Citi: Bank of Japan meeting outcome is "ideal" for Japanese stock market

Golden Ten Data, June 16 – Citi Research strategists stated that the outcome of the Bank of Japan meeting was "ideal" for the Japanese stock market. "The Bank of Japan decided to raise its policy interest rate from 0.75% to 1.0% and will stop reducing its long-term Japanese government bond purchases from April 2027." The strategists pointed out that this decision "maintains an accommodative monetary policy while curbing sharp fluctuations in exchange rates and long-term interest rates." Citi expects Japanese corporate earnings to maintain an average annual growth of about 10%. The strategists added that this will "benefit from strong price pass-through effects, boosting profit margins, as well as economic support provided by government and Bank of Japan policies."