Japan's Central Bank May Raise Policy Rate in July, Economist Says

Economist Harumi Taguchi from S&P Global Market Intelligence has indicated that Japan's central bank might increase its policy rate from the current 0.75% to 1.0% in July, with further hikes expected in December and 2027, potentially reaching 1.5%. According to Jin10, Taguchi noted that if rising oil prices and a weakening yen intensify concerns about inflation's secondary effects, the central bank may opt for additional rate hikes. Taguchi also mentioned that due to sustained high oil prices boosting dollar demand, increased expectations for U.S. Federal Reserve rate hikes, and concerns over Japan's fiscal expansion, the yen is unlikely to recover in the short term.