BOJ Likely to Accelerate Pace of Rate Hikes to Every 3-4 Months
Dow Jones08-18 11:22
0322 GMT - The Bank of Japan is likely to accelerate pace of rate hikes to every three to four months from once every six months currently, say three analysts at DBS Group Research in commentary. "We bring forward our expected timing of the next BOJ rate hike to September and expect another two moves in 1Q27 and 2Q27, respectively, taking the overnight call rate to 1.75% by mid-2027," the analysts say. They note that the latest BOJ communication has gotten more hawkish and that the Japanese government seems less opposed to an early rate increase. DBS also raises its GDP growth forecasts for Japan to 0.9% from 0.5% for 2026, and to 1.0% from 0.5% for 2027.
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