$Mitsubishi UFJ Financial Group (8306.JP)$ Quote. Mitsubishi...

On the 19th, Mitsubishi UFJ Financial Group's Chairman, Kaneko Mikkei, revealed that the Bank of Japan is likely to raise its policy interest rate uncollateralized call rate target to 'neutral interest rate' of 1% by March 2026.

Chairman Mikkei, at the 'Global Financial Leaders Investment Summit' held in Hong Kong, while mentioning MUFG's house view (investment opinion), predicted that the Bank of Japan would decide on another rate hike by March next year, stating that Japanese companies and households should be able to withstand a 1% interest rate.

Japanese stocks and real estate assets are said to be undervalued compared to the late 1980s and 1990s peak, while expressing the recognition that the depreciation of the yen does not have a significant impact on the Japanese economy due to the lack of significant export drive.