Japan Rate Hike Expected

Takaichi Economic Adviser Projects Bank of Japan Rate Hike in September

The Bank of Japan (BOJ) is expected to raise interest rates in September and continue increasing at a rate rate rate once every quarter until January next year, according to Takuji Aida, an economic adviser to Prime Minister Sanae Takaichi. Aida is pushing forward his forecast of the next increase from January 2027. This comes as September provides a narrow window for a hike before an extraordinary session of parliament convenes in October. After the September rate hike, the BOJ is likely to follow up with another increase by January next. Aide warns that the premature pace of rate hikes would negatively impact the economy. The prospect of a rate hike has increased due to calls from U.S. Treasury Secretary Scott Bessent and Finance Minister Satsuki Katayama.

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