Dutch International Group economists said that the Bank of Japan is expected to keep the policy interest rate unchanged at 1.25% this week while evaluating the impact of last month's rate hike. Their benchmark scenario assumes that the Bank of Japan will raise interest rates by another 25 basis points each in January and April 2027, raising the policy interest rate to 1.75%.

Dutch International Group economists said that the Bank of Japan is expected to keep the policy interest rate unchanged at 1.25% this week while evaluating the impact of last month's rate hike. Their benchmark scenario assumes that the Bank of Japan will raise interest rates by another 25 basis points each in January and April 2027, raising the policy interest rate to 1.75%.