BOJ Expected to Hike Rates to 1.25% Next Week, 1.75% by Q2 2027

A Reuters survey of economists indicates the Bank of Japan will raise its policy rate to 1.25% at next week's meeting, with further hikes to 1.75% expected by Q2 2027. This signals a continued tightening cycle, deviating from Japan's prolonged ultra-loose monetary policy. The move would impact global rates and carry trades, potentially strengthening the yen and pressuring Japanese equities.