Min Joo Kang of ING Groep NV reports that the Bank of Japan's pace of interest rate hikes is likely to be "quite gradual." The senior economist for Japan and South Korea stated that Japan's financial markets may remain unstable due to concerns over long-term fiscal health and a growing debt-servicing burden, which could impact the country's economic performance. She noted, "Further fiscal stimulus could have counterproductive effects on the economy." She added that the current government is likely to maintain its expansionary policy stance, posing a significant risk to the economy in 2026. ING believes October is the most likely timing for the Bank of Japan's next rate hike.
Comments