BofA: Bank of Japan to Raise Rates to 0.75% in December, Then Hike Every Six Months

BofA economist Takayasu Kudo wrote in a report that after the Bank of Japan raises its target rate from 0.5% to 0.75% at its December 18-19 meeting, it is expected to continue raising the policy rate once every six months.

He stated: "Based on recent developments in corporate earnings, wage negotiations, the depreciation of the yen in the foreign exchange market, as well as dialogues with the government, the Bank of Japan is increasingly confident that it can raise rates at the upcoming December meeting." The economist predicts that the Bank of Japan will hike rates in June 2026, followed by additional hikes in January and July 2027.