Brokerages expect next BOJ rate hike in December, further tightening in 2027
TLT•Several brokerages expect the Bank of Japan’s next rate hike in December. The policy rate is 1.25%, and forecasts include further 25-basis-point increases during 2027.
1. Brokerage forecasts
The Bank of Japan raised interest rates to a 31-year high in September and signalled further tightening could follow. Several brokerages expect its next hike in December; the central bank’s next policy decision is due October 30.
2. Further increases
Forecasts vary: HSBC expects one hike in the first quarter of 2027, while J.P. Morgan and TD Securities expect four increases, starting in December 2026 and continuing into 2027. All rate increases referenced in the forecasts are 25 basis points each.
