Bank of America: The Bank of Japan will raise interest rates to 0.75% in December, followed by rate hikes every six months.

On December 5, Bank of America economist Takayasu Kudo wrote in a report that after the Bank of Japan raises its target interest rate from 0.5% to 0.75% at its meeting on December 18-19, 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, and dialogues with the government, the Bank of Japan is increasingly convinced that it can raise rates at the upcoming December meeting.” The economist expects the BOJ to raise rates in June 2026, followed by further hikes in January and July 2027. (Jin10)