Mizuho CEO on Fed, BOJ, and Japan's Outlook (with Shery Ahn)

10/13/2025 2:35:32 PM	short term cautious up	5 days later	-0.53%	-0.26%

9/27/2025 1:39:47 AM	short term sharp up	7 days later	+0.51%	+0.76%

Coming off the Fed's third consecutive rate cut. Do you have a reaction?

Shery Ahn

Masahiro Kihara

We have seen a little bit of slowdown in the US economy. Unemployment moving up a little bit. Delinquency rates for auto loans or credit cards up a little bit. This is a relief.

You have a big business in the US. Will this have implications for you?

Shery Ahn

Masahiro Kihara

It will have a positive effect on our business. The momentum will continue probably, and that's good for us.

When it comes to the economic outlook for the US, you expect the Fed to do more?

Shery Ahn

Masahiro Kihara

That's what we expect. Maybe two or three.

In 2026? You are already seeing the slowdown in the US economy.

Shery Ahn

Masahiro Kihara

If I talk with my people... what's happening in the real world. It looks like a little bit of slowdown is happening. That's reality.

Talk about the concerns around rising JGB yields. Is that a concern for you?

Shery Ahn

Masahiro Kihara

BOJ will raise rates. As long as the wage increase continues, the BOJ will have another rate hike next year. The question is the government has to show they will keep discipline on fiscal policy. If they do that, there won't be a crazy shock. The rate can go up. JGB 10-year can go up beyond 2%. But I think it will remain in the lower end.

If we talk about Yen...

Shery Ahn

Masahiro Kihara

Even if BOJ raises rates, I don't think that will change a lot. The real interest rate is negative in Japan. We see the rate cuts increase, narrow the gap. There can be appreciation again a little bit but I think it's gonna be somewhere around 145 to 150. You won't see huge Yen appreciation.

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