TOKYO -- The Bank of Japan could see a net loss of up to 2 trillion yen ($12.7 billion) in fiscal 2027 or 2028 if it raises its short-term policy rate to 2%, according to the first estimate of its kind to be published by the central bank.
The estimate issued Thursday found that the BOJ would suffer most financially if it raises the short-term rate at a pace of 75 basis points yearly until it reaches the 2% threshold, and the spread between the short-term rate and long-term bond rate remains at 25 basis points.
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