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BoJ likely to raise ratees higher than most expects says former official Hideo Hayakawa

Bloomberg carry the piece with a view from former Bank of Japan executive Hideo Hayakawa.

Bloomberg is gated, but in brief:

  • Hayakawa predicts the BoJ will raise interest rates beyond market expectations
  • two more hikes possible in 2025
  • sees the terminal rate around 1.5%, higher than most analysts but aligned with the IMF’s projection
  • next increase could happen around July, with another possible by year-end
  • rates likely won’t stop at 1%, as the BOJ’s neutral rate estimate ranges from 1% to 2.5%
  • hikes depend on the yen’s performance, global monetary policy, and uncertainties from U.S. policies under Trump

The yen is gaining today:

This article was written by Eamonn Sheridan at www.forexlive.com.

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