Japan: BoJ tightening path in focus – ING
ING economists Deepali Bhargava and Lynn Song expect the Bank of Japan to raise its policy rate by 25bp to 1.25%, citing persistent price pressures. They project two further 25bp hikes in January and April 2027, taking the rate to 1.75%.
ING economists anticipate the Bank of Japan will increase its policy rate by 25 basis points to 1.25% on Friday, due to ongoing price pressures. They foresee two further 25bp hikes in January and April 2027, raising the rate to 1.75%. The rationale behind this stance is that policymakers might prefer to initiate rate hikes sooner while inflation remains high, before the policy landscape becomes more complex after April.
Japan will release its August inflation data on the same day. Market expectations suggest headline inflation will rise to 2.0% year-on-year, while core inflation remains steady at 1.8%.
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