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2026-03-25 13:48:05
[Sony Financial Economist: Bank of Japan May Raise Interest Rates Twice in 2026 and 2027] (1) Sony Financial economist Masaaki Kanno predicts that the Bank of Japan may raise interest rates by 25 basis points each in June and December 2026, with the June rate hike possibly occurring as early as April. This is his base case scenario forecast, with a 55% probability of occurrence. (2) He expects two more rate hikes in 2027, at which point the policy rate will reach 1.75%. (3) Kanno points out that the policy rate is expected to remain below the inflation rate throughout the forecast period, thus financial conditions are likely to remain loose.
