TechFlow news, January 20 — According to Jinshi News, Bank of America announced an adjustment to its rate hike forecast for the Bank of Japan (BOJ), now expecting the BOJ to raise interest rates by 25 basis points to 0.50% at its policy meeting this Friday, January 26—significantly earlier than the previously anticipated March timing.
Bank of America cited strong inflation data and the BOJ's potential need to revise up its inflation forecasts as the main reasons for bringing forward the rate hike expectation. Additionally, recent hawkish comments from senior BOJ officials, including Governor Kazuo Ueda and Deputy Governor Ryozo Himino, support this outlook. The bank had previously favored a March hike to allow the BOJ more time to assess policies of the new U.S. administration.
