Bank of America: Bank of Japan will raise interest rates to 0.75% in December and then every six months

Takayasu Kudo, an economist at Bank of America, wrote in a note that the increase in the policy rate is expected to continue every six months after the Bank of Japan raised its target rate from 0.5 per cent to 0.75 per cent at its December 18-19 meeting. "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 rates at its upcoming December meeting," he said. The economist expects the BoJ to raise rates in June 2026, followed by further increases in January and July 2027. (Jin Ten)