Mizuho Financial Group President Masahiro Kihara projected Japan’s terminal policy rate will reach at least 1.5%. Speaking with Bloomberg at Davos, he identified April as the next likely opportunity for the Bank of Japan to raise interest rates. His forecast adds to market expectations for a gradual tightening cycle.

Kihara’s outlook signals growing institutional confidence in Japan’s economic normalization. For investors, a higher terminal rate could strengthen the yen and impact carry trades. It also suggests Japanese banks, including Mizuho, may see improved net interest margins over time, boosting profitability after years of ultra-low rates.

The BOJ’s next policy meeting in April will be closely watched. Markets are pricing in a potential hike, but the pace remains uncertain. Kihara’s view from a major lender adds weight to the debate on how aggressively the central bank will unwind its decade-long accommodative stance.