BNP Paribas Economists Predict Faster Rate Hikes by Bank of Japan

BNP Paribas economists have forecasted that the Bank of Japan (BOJ) may accelerate its rate hikes due to expansionary fiscal policies by Japanese Prime Minister Sanae Takaichi, which could further drive inflation. According to Jin10, analysts anticipate that the BOJ will raise interest rates in April and continue tightening every four to five months until the policy rate reaches 2%. The report also suggests that, depending on future exchange rate movements, the possibility of an earlier rate hike in March cannot be ruled out. Japanese officials have previously warned that the government is prepared to intervene in case of excessive yen volatility.