Bank of America: The Bank of Japan will raise rates to 0.75% in December, then hike once every six months thereafter

According to a report by Jinse Finance, Bank of America economist Takayasu Kudo wrote that after the Bank of Japan raised its target interest rate from 0.5% to 0.75% at its meeting on December 18-19, it is expected to continue raising the policy rate every six months. He stated: “Based on recent developments in corporate earnings, wage negotiations, the depreciation of the yen in the foreign exchange market, and dialogues with the government, the Bank of Japan is increasingly confident that it can raise interest rates at the upcoming December meeting.” The economist expects the Bank of Japan to raise rates in June 2026, followed by additional hikes in January and July 2027. (Jin10)