Capital Economics: The Bank of Japan's final interest rate is expected to reach 1.75% in 2027.

Capital Economics stated in a report that the Bank of Japan's decision to raise interest rates was not surprising, although its hawkish message suggests further policy tightening is likely. The Bank of Japan expressed greater confidence in the Japanese economy's ability to withstand tariff uncertainties and in its expectation that corporate profits will remain high. It anticipates that upcoming economic activity and inflation data are more likely to exceed expectations compared to the Bank of Japan's forecasts. Capital Economics stated that its confidence is strengthening, and it expects the final interest rate to reach 1.75% in 2027, higher than the market consensus. (Jinshi)