ANZ Research forecasts the Bank of Japan will hike interest rates by 25bp in June and again in Q4 2026, bringing the policy rate to 1.25%. This move is intended to anchor inflation expectations and address core inflation levels persistently above 2%.
Key Takeaways
- 1.The Bank of Japan is expected to raise interest rates by 25bp on June 16, 2026, reaching 1.0%.
- 2.An additional 25bp rate hike is forecast for Q4 2026, bringing the policy rate to 1.25%.
- 3.The BoJ's tightening bias is seen as a strategic effort to maintain price stability and anchor inflation expectations.
Table of Contents
- Bank of Japan to hike in June and Q4
- Conclusion
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Authors
Brian Martin
Themes
Monetary Policy NormalizationInflation ManagementFX Intervention Credibility
Regions
Asia PacificJapan
