Mitsubishi UFJ Financial Group executives: The Bank of Japan should clarify the future interest rate path after raising rates in June.

Arihiro Nagata, Global Market Head of the Mitsubishi UFJ Financial Group, stated in an interview that the market generally expects the Bank of Japan to raise interest rates this month. After that, the Bank of Japan should clearly outline the path of policy normalization to stabilize the government bond market. The second largest bank in Japan is calling on the Bank of Japan to provide clearer guidance as the 10-year Japanese government bond yield has risen to a 30-year high, and the yen has weakened against the US dollar once again, approaching the psychological barrier of 160 yen. "The Bank of Japan should raise interest rates in June, I expect it to - it will definitely do so this time," Arihiro Nagata said in the interview, adding that the key to the Bank of Japan's meeting on June 15-16 is how clearly they will communicate the path towards policy normalization. "The clearer the policy path, the more likely the space for further increase in long-term interest rates will shrink," he said.