FACTBOX — Brokerages expect next BOJ rate hike in Dec, further tightening in 2027
(Updates headline) Oct 16 (Reuters) — The Bank of Japan raised interest rates to a 31-year high in September and signalled that further tightening could follow as it shifts its focus to preventing inflation from overshooting its target. Several brokerages expect the BOJ's next interest rate hike to come in December. The policy rate currently stands at 1.25% and the central bank's next policy decision is due on October 30. Here are the policy forecasts from major brokerages: Brokerage Policy forecast J.P.Morgan 4 rate hikes, in December 2026, April, July and December 2027 HSBC 1 rate hike in Q1 2027 BofA 3 rate hikes, in December 2026, March and Global July 2027 Research Goldman 2 rate hikes in January and July 2027 Sachs Morgan 2 rate hikes in December 2026 Stanley and March 2027 Citigroup 3 rate hikes, in December 2026, March and July 2027 Nomura 2 rate hikes in December 2026 and March 2027 Standard 2 rate hikes in Q1 2027 Chartered Deutsche 2 rate hikes, in January and April 2027 Bank UBS Global 2 rate hikes, in January and June 2027 Wealth Management Macquarie 2 rate hikes, in December 2026 and Q2 2027 TD 4 rate hikes, roughly once every quarter, in Securities December 2026, Apr
(Updates headline) Oct 16 (Reuters) — The Bank of Japan raised interest rates to a 31-year high in September and signalled that further tightening could follow as it shifts its focus to preventing inflation from overshooting its target. Several brokerages expect the BOJ's next interest rate hike to come in December. The policy rate currently stands at 1.25% and the central bank's next policy decision is due on October 30.
Here are the policy forecasts from major brokerages: Brokerage Policy forecast J.P.Morgan 4 rate hikes, in December 2026, April, July and December 2027 HSBC 1 rate hike in Q1 2027 BofA 3 rate hikes, in December 2026, March and Global July 2027 Research Goldman 2 rate hikes in January and July 2027 Sachs Morgan 2 rate hikes in December 2026 Stanley and March 2027 Citigroup 3 rate hikes, in December 2026, March and July 2027 Nomura 2 rate hikes in December 2026 and March 2027 Standard 2 rate hikes in Q1 2027 Chartered Deutsche 2 rate hikes, in January and April 2027 Bank UBS Global 2 rate hikes, in January and June 2027 Wealth Management Macquarie 2 rate hikes, in December 2026 and Q2 2027 TD 4 rate hikes, roughly once every quarter, in Securities December 2026, April, July and October 2027 * All rate increases referenced in the forecasts are 25 basis points (bps) each (Reporting by Joel Jose in Bengaluru; Editing by Jochelle Mendonca) ((JoelJose@thomsonreuters.com;)