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Bank stocks including Mizuho Financial Group extend gains in afternoon session as BOJ holds policy steady but June rate hike scenario gains traction
Major banks including Mizuho Financial Group, Inc. <8411>, Sumitomo Mitsui Financial Group, Inc. <8316>, and Mitsubishi UFJ Financial Group, Inc. <8306> extended gains in the afternoon session on April 28, sending the TSE banking sector index up more than 4%. While the Bank of Japan (BOJ) maintained its current policy stance at the conclusion of its April 27-28 meeting, the decision was marked by a narrow 6-3 vote. Board members Junko Nakagawa, Hajime Takata, and Naoki Tamura dissented, signaling a growing hawkish tilt within the board. In its quarterly Outlook Report, the BOJ raised its median forecast for fiscal 2026 core consumer inflation (excluding fresh food) to 2.8% from the 1.9% projected in January. The upward revision fueled market speculation that the central bank will move toward a rate hike at its next meeting on June 15-16. Investors snapped up bank shares on expectations of improved net interest margins as domestic rates trend higher.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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