BOJ urged to weigh corporate funding risks before June rate decision in World Economy News 12/05/2026 A government advisory panel called on the Bank of Japan to consider corporate funding conditions when setting monetary policy, signaling potential resistance to a rate hike at the central bank’s June meeting. Private sector members of the government’s economic and fiscal policy council submitted materials on Monday asking the BOJ to implement appropriate monetary policy while monitoring funding conditions in financial markets and tracking price developments, according to the Cabinet Office. The panel also said the central bank should remain aware that goods shortages and rising prices could increase corporate funding needs. The comments follow the BOJ’s decision last month to keep policy settings unchanged in a 6-3 vote, an unusually divided outcome that suggests growing support for a rate increase. The central bank’s next policy meeting is scheduled for June 16. Traders in the overnight interest rate swaps market are pricing in a 75% probability of a hike at that meeting. In its quarterly outlook report, the BOJ raised its core inflation forecast for the current fiscal year to 2.8%, exceeding market expectations. The central bank also cut its economic growth projection to 0.5%, half of its previous estimate. The advisory panel called on the government to support corporate financing, noting that the Middle East conflict has driven up crude oil prices and affected business activity. Since April, the government has expanded access to low interest loans for businesses that could be impacted by the regional conflict. Source: Investing.com 2026-05-12 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share