BOJ still likely to raise interest rates further with target of 1.50%, says ex-policymaker
The Bank of Japan may raise interest rates to 1.00% by mid-next year, contingent on economic conditions. Further hikes to 1.50% are possible but challenging due to borrowing costs nearing the neutral rate, estimated at 1.75%. The BOJ faces criticism from Prime Minister Takaichi and may proceed cautiously, possibly hiking rates twice next fiscal year if the US economy supports Japan's inflation target. Economic uncertainty could delay hikes to 2027, with decisions made on a meeting-by-meeting basis.
Investinglive·
