Moody's: Expects the Bank of Japan to raise interest rates twice more in 2025

Moody's analyst Stefan Angrick stated that although the Bank of Japan did not take action earlier, it seems determined to tighten its policy further. The latest economic data leaves the Bank of Japan with limited options: the strength of the Japanese economy is not sufficient for the central bank to raise interest rates significantly, but the current situation may lead to further depreciation of the yen and increased inflation. Moody's analysis predicts that the Bank of Japan will have two more rate hikes in 2025. If wages and economic growth exceed expectations, the yen weakens again, or overseas central banks raise interest rates, the Bank of Japan may intensify its tightening efforts