TechFlow news, on March 19, according to Jinshi Data, Capital Economics' Head of Asia-Pacific Marcel Thieliant said that the Bank of Japan kept interest rates unchanged today, as widely expected, but there remains a possibility for further policy rate hikes.
Capital Economics stated that it is highly likely the Bank of Japan will raise rates at its meeting on April 30 to May 1. "Inflation is well above the BoJ's 2% target and will exceed committee members' forecasts starting from January," Thieliant said.
He added, "Moreover, wage increases resulting from this year's spring labor negotiations are expected to be larger than last year's, which should add further upward pressure on inflation in the coming months."
Capital Economics expects the Bank of Japan to raise its policy rate to 1.5% by 2027.
