Mizuho Markets’ head anticipates the Bank of Japan (BOJ) will soon begin raising interest rates, and at a quicker pace than previously expected. This prediction comes as Japanese financial institutions display caution regarding re-entry into the bond market. Rising rates and ongoing inflation are contributing factors to this reluctance. Many firms are hesitant to aggressively trade bonds given the current economic climate and potential for further rate adjustments. The expectation is the BOJ will respond to persistent inflation with monetary tightening. This shift in policy could significantly impact Japan’s financial landscape and investment strategies. It reflects a growing belief that Japan is moving away from its prolonged period of ultra-loose monetary policy.