Nomura: Bank of Japan may face 'considerable hurdles' in raising rates

Odaily News Four members of Nomura Securities' global markets research department said the Bank of Japan may face "considerable obstacles" in raising interest rates this year. They said these issues include the impact of US tariffs on the domestic economy and prices, the Japanese government's economic stimulus measures, and the drafting of Japan's fiscal 2026 budget. Due to US tariffs, wage increases in March-April 2026 are likely to be lower than expected. This means that the growth of potential inflation from then on may temporarily slow. However, the worst impact of the tariffs may end in January 2026, and Nomura expects the Bank of Japan to raise interest rates in January 2026 and keep interest rates unchanged in fiscal 2026. (Jinshi)