Oct 16 (Reuters) – The Bank of Japan raised interest rates to a 31-year high in September and signalled that further tightening could follow as it shifts its focus to preventing inflation from overshooting its target.Several brokerages expect the BOJ’s next interest rate hike to come in December. The policy rate currently stands at 1.25% and the central bank’s next policy decision is due on October 30. Here are the policy forecasts from major brokerages:
Brokerage Policy forecast
J.P.Morgan 4 rate hikes, in December 2026, April, July
and December 2027
HSBC 1 rate hike in Q1 2027
BofA 3 rate hikes, in December 2026, March and
Global July 2027
Research
Goldman 2 rate hikes in January and July 2027
Sachs
Morgan 2 rate hikes in December 2026
Stanley and March 2027
Citigroup 3 rate hikes, in December 2026, March and
July 2027
Nomura 2 rate hikes in December 2026 and March 2027
Standard 2 rate hikes in Q1 2027
Chartered
Deutsche 2 rate hikes, in January and April 2027
Bank
UBS Global 2 rate hikes, in January and June 2027
Wealth
Management
Macquarie 2 rate hikes, in December 2026 and Q2 2027
TD 4 rate hikes, roughly once every quarter, in
Securities December 2026, April, July and October 2027
** All rate increases referenced in the forecasts are 25 basis points (bps) each
(Reporting by Joel Jose in Bengaluru; Editing by Jochelle Mendonca)
