Nomura Analysts Predict Earlier Rate Hike by Bank of Japan

According to Odaily, Nomura Securities analysts have revised their forecast for the Bank of Japan's next interest rate hike, moving it forward from March to January. This adjustment is based on recent statements indicating increased confidence within the Bank of Japan regarding factors influencing rate decisions. Analysts cited comments from the Bank of Japan's Deputy Governor, suggesting that the bank is concluding that wage growth in Japan and reduced uncertainty in U.S. policy are favorable. Kyohei Morita and Uichiro Nozaki noted that clarity on tariffs and other policy details in Trump's upcoming inaugural address will support the Bank of Japan's rate hike. However, they added that if the speech triggers financial market volatility, the Bank of Japan might maintain current rates. While the Bank of Japan may raise its CPI inflation forecast, Nomura expects the bank will not accelerate the pace of rate hikes.