Bank of America: The Bank of Japan will raise interest rates to 0.75% in December, followed by an increase every six months

Bank of America economist Takayasu Kudo wrote in a report that after the Bank of Japan raises the target interest rate from 0.5% to 0.75% at its meeting on December 18-19, it is expected to continue raising the policy rate every six months.

He stated, "Based on recent developments in corporate earnings, wage negotiations, the depreciation of the yen in the foreign exchange market, and dialogue with the government, the Bank of Japan is increasingly convinced that it can raise interest rates at the upcoming December meeting."

The economist expects the Bank of Japan to raise interest rates in June 2026, followed by further increases in January and July 2027. (Jin Shi)