Case for further BoJ tightening continues to strengthen

The Bank of Japan will keep policy settings unchanged at its upcoming meeting that ends on 19th March. But with inflation set to overshoot the Bank’s forecasts, we expect the Bank to hike rates again in May rather than in July as most anticipate. And with inflation set to remain around its 2% target for longer, we now expect the Bank to lift rates to 1.5% by 2027.

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