Barclays Bank expected the Bank of Japan to raise interest rates again in January 2025
The Bank of Japan will most likely need to wait until at least the December meeting to confirm that the next wave of service price increases is reflected in the CPI data, as Barclays expects wage pressure to move inflation higher.
The Bank of Japan is expected to raise interest rates next in January, Barclays says the summary of the July meeting shows that some board members are biased against raising interest rates, and even those who support further increases are cautious.
BMI also says that the Bank of Japan will take longer to raise interest rates.
As BMI said in a recent note that the Bank of Japan will adopt a more cautious approach in raising interest rates after the recent turmoil in the global market, analysts at the bank said We expect the Bank of Japan to take a more cautious approach and raise interest rates by about 25 basis points and its previous forecast was 50 basis points.
