Goldman Sachs Predicts Further Bank of Japan Rate Hike Likely in January

Deep News06-17

Economists at Goldman Sachs, including Akira Otani, project the Bank of Japan is expected to implement another interest rate increase in January 2027, although they note considerable uncertainty surrounds the timing of this next move.

The economist pointed out that with underlying inflation hovering near the 2% target, even minor shifts such as further modest yen depreciation could substantially elevate the risk of inflation exceeding that level.

Otani stated that, as a result, the probability distribution for the timing of the next rate hike is skewed toward an earlier action rather than a later one.

He further added that the actual timing of the rate increase will be "significantly influenced by the progress of communication" with the government.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment