Goldman Sachs: Bank of Japan May Raise Rates Again in January Next Year

Odaily Planet Daily News Goldman Sachs economist Akira Otani stated that the Bank of Japan is highly likely to raise interest rates again in January 2027, but the uncertainty surrounding the timing of future rate hikes is high.

"With the underlying inflation rate close to 2%, even small movements, such as a slight further depreciation of the yen, could significantly increase the risk of inflation exceeding 2%," the economist noted. "Therefore, the probability distribution for the timing of the next rate hike is considered to be skewed towards an earlier move." Otani added that the actual timing of the rate hike would be "significantly influenced by the progress of communication with the government." (Jin Shi)